By: Sara Patterson

Asian stocks were lower during Tuesday’s trading as investors expressed concern about the status of the Eurozone debt crisis in the coming quarter and weak holiday sales in the US. Weak retail sales in the US can directly impact Chinese manufacturing for the negative, Asian traders speculated. Markets were also affected by thin trading volumes during the holiday weekend which kept markets in Australia, New Zealand and Hong Kong closed yesterday.

Tokyo lost 0.4 percent to 8,442.14 and the Shanghai Index, China’s benchmark, dropped nearly 1 percent to 2,314.4. Other open markets including Taipei, Singapore and Seoul also declined.

Yuan Hits All-Time High

Despite a worsening Asian stock market, the Chinese Yuan hit an all-time high in intraday trading on Monday, and the currency is expected to remain stable or to rise slightly by the year’s end, with analysts predicting the Yuan to close the year at approximately 6.30 against the Dollar.

In 2012 the Yuan is expected to rise further, with analysts predicting that the bulk of the growth will come in the second quarter, as the Chinese will likely attempt to inhibit growth as they wait to see how the Eurozone crisis plays out. The Yuan appreciated 4.27 percent in 2011, the bulk of which happened in the beginning of the year, before efforts were made to stave off the currency’s strengthening – efforts which seem likely expand into the coming year.