(fxcue news) - Asian stocks advanced on Tuesday after shares of big U.S. technology companies rallied overnight in thin trading at the start of a holiday-shortened week. Regional markets moved in a tight range before ending higher, with Hong Kong and Sydney having shortened session for Christmas Eve. Gold and oil clung to modest gains in Asian trade despite a firmer dollar and elevated bond yields. Chinese and Hong Kong markets rallied after the Finance Ministry announced the government will increase public spending with a greater focus on promoting domestic demand growth next year. China's Shanghai Composite index jumped 1.26 percent to 3,393.53 while Hong Kong's Hang Seng index climbed 1.08 percent to 20,098.29. Japanese markets ended lower as Finance Minister Katsunobu Kato reiterated Tokyo's discomfort over excessive foreign exchange moves. Meanwhile, the Bank of Japan meeting minutes revealed that policymakers agreed in October to keep raising interest rates if the economy moves in line with their forecast. The Nikkei average dipped 0.32 percent to 39,036.85 while the broader Topix index settled marginally higher at 2,727.26. Heavyweights SoftBank and Fast Retailing fell 1.4 percent and 0.6 percent, respectively. Honda Motor soared 12.2 percent, Nissan Motor jumped 6 percent and Mitsubishi climbed 7.2 percent after an announcement that they have officially begun discussions for a potential merger of the three, which will be completed in 2026. Seoul stocks ended little changed amid persistent concerns over political turmoil in the country. Investors also reacted to data that showed South Korea's consumer sentiment dropped sharply this month to hit the weakest level in more than two years. The Kospi average finished marginally lower at 2,440.52 after the country's main opposition party said it will start impeachment proceedings against Prime Minister and Acting President Han Duck-soo. Australian markets eked out modest gains and the Aussie dollar stayed on the defensive amid speculation that the Reserve Bank of Australia will begin rate cuts in February. The RBA's December 9-10 meeting revealed that the board had grown more confidence about inflation and that it would be appropriate to start easing policy restrictions if future data aligns with or falls below forecasts. The benchmark S&P/ASX 200 edged up by 0.24 percent to 8,220.90, led by gains in the tech and energy sectors. The broader All Ordinaries index rose 0.22 percent to 8,471.50. Across the Tasman, New Zealand's benchmark S&P/NZX-50 index ended up 0.67 percent at 13,074.74. U.S. stocks rose overnight and Treasury yields climbed to an almost seven-month high after the release of mixed economic readings. A measure of U.S. consumer confidence deteriorated in December, while new home sales rebounded and core capital goods orders increased in November, separate set of data revealed. The Dow added 0.2 percent to end higher for a third day running, while the S&P 500 climbed 0.7 percent and the tech-heavy Nasdaq Composite rallied 1 percent. U.S. markets will close early today and will remain shut on Wednesday due to Christmas.