(fxcue news) - Asian stocks fell broadly on Tuesday after U.S. President-elect Donald Trump said he plans to impose 25 percent tariffs on Mexico and Canada and an additional 10 percent on China on his first day in office, ramping up fears of a renewed trade war. Neither the United States nor China would win a trade war, the Chinese Embassy in Washington said. The dollar rallied on Trump's tariff threat and ahead of the release of Federal Reserve's preferred measure of inflation, the personal consumption expenditures (PCE) price index, due on Wednesday. Gold was little changed around $2,625 per ounce levels while oil edged up after a sharp decline in the previous session as Israel said that it had edged closer to a ceasefire agreement with Hezbollah. Chinese and Hong Kong markets ended largely unchanged amid expectations that Chinese fiscal stimulus will help counter the impact of the tariffs. China is set to hold two top political meetings in December, where authorities could ramp up stimulus. China's Shanghai Composite index slipped 0.12 percent to 3,259.76 and Hong Kong's Hang Seng index finished marginally higher at 19,159.20 ahead of Chinese industrial profit data and purchasing managers index numbers due this week. Japanese markets fell sharply, with a stronger yen and tariff concerns keeping investors nervous. The Nikkei average dipped 0.87 percent to 38,442 ahead of November inflation numbers from the Tokyo region due later in the week. The broader Topix index settled 0.96 percent lower at 2,689.55. Tech giants Advantest, Tokyo Electron and Screen Holdings lost 2-4 percent. Seoul stocks ended lower ahead of a Bank of Korea interest-rate decision on Wednesday. The Kospi average dropped 0.55 percent to 2,520.36, snapping a two-day winning streak with bio and financial shares facing significant selling pressure. Australian markets snapped a three-day winning streak, with energy, financials and material stocks leading losses. The benchmark S&P/ASX 200 fell 0.69 percent to 8,359.40 after hitting a record high in the previous session. The broader All Ordinaries index closed 0.56 percent lower at 8,612.60. Across the Tasman, New Zealand's benchmark S&P/NZX-50 index closed down 0.62 percent at 13,113.76 ahead of a RBNZ rate decision on Wednesday, with markets expecting a 50-basis point cut to the official cash rate. Overnight, U.S. stocks closed higher as bond yields fell on news that President-elect Donald Trump intends to nominate billionaire hedge fund manager Scott Bessent as Treasury Secretary. The Dow Jones Industrial Average rallied 1 percent to extend gains for a fourth straight session and reach a new record closing high. The S&P 500 added 0.3 percent to extend its winning streak to six sessions and the tech-heavy Nasdaq Composite also rose 0.3 percent.