05:34 AM EST, 01/06/2025 (MT Newswires) -- Asian stock markets were soft on Monday as traders weighed interest-rate outlooks and Beijing-Washington trade tensions.

Hong Kong, Shanghai and Tokyo lost ground, although Taiwan's TWSE index gained 2.8% on the back of a 4.6% gain of index heavyweight Taiwan Semiconductor Manufacturing, which struck a fresh all-time high after the Friday rally of tech peers in New York.

In Japan, the Nikkei 225 opened evenly after an extended year-end holiday but tracked lower through the day, as traders booked profits from the 2024 bull market but mulled possibly higher interest rates pending tightening by the Bank of Japan.

The benchmark Nikkei 225 fell 587.49 to 39,307.05, as losing issues outnumbered gainers 175 to 49.

Leading the upside was industrial-machinery maker Ebara, up 5.7%, while online content house DeNA lost 7.8%.

In economic news, the final Japan service-sector purchasing manager index logged at 50.9 in December, up from 50.5 in November and rising further above the 50-marker that separates growth from contraction, reported S&P Global.

In Hong Kong, the Hang Seng Index opened higher and traded south, finishing off 0.4% as traders again awaited clarity on Beijing plans for stimulus for the nation's ailing property sector, and to counteract general economic sluggishness.

The broad gauge Hang Seng lost 71.98 to 19,688.29, as losing issues outnumbered gainers 41 to 31. The Hang Seng TECH Index lost 0.2% on the day, while Mainland Properties Index lost 0.7%.

Leading the upside was Xinyi Solar, gaining 5%, while China Resources Beer declined 3.7%.

On the mainland, the Shanghai Composite lost 0.1% to 3,206.92.

In economic news, the seasonally adjusted headline Caixin/S&P Global services purchasing managers index logged at 52.2 in December, up from 51.5 in November, reported S&P Global.

On the other regional exchanges, the South Korean KOSPI rose 1.9%; the Australian ASX 200 inclined 0.1%; the Singapore Straits Times Index rose 0.5%, and the Thai Set lost 0.9%. In late trading in Mumbai, the Sensex was down 1.5%.