Asian stocks were poised for a weak start following losses in US markets, as global stocks struggled to maintain momentum heading into the year's end. The MSCI All Country World Index showed minimal movement after a 0.2% decline on Monday, its first in eight sessions.

A gauge of Asian shares remained flat, mirroring the steadiness of S&P 500 Index futures after the US benchmark experienced a 0.3% drop. The Nasdaq 100 also slid, falling 0.5%. In currency markets, China's onshore yuan strengthened, surpassing the key 7-per-dollar level for the first time since 2023. Silver and gold prices stabilized after a sharp decline from recent all-time highs.

The subdued performance reflected a lack of positive catalysts to drive market sentiment. Investors appeared hesitant to make significant moves as the year drew to a close, contributing to the overall lack of direction in global equities. The strengthening of the yuan could have implications for trade and investment flows, potentially impacting companies with significant exposure to the Chinese market.

Looking ahead, market participants will be closely monitoring economic data releases and geopolitical developments for potential catalysts that could influence market direction in the new year. The performance of Asian markets will likely remain sensitive to movements in US equities and currency fluctuations.