Chinese ADRs and ETFs slid in overnight trading. YINN down over 5%; Alibaba, CWEB, NIO, JD down around 2%; PDD, XPeng, Li Auto down over 1%.

The risk-on mood waned as investors feared China’s economic slowdown would deepen after key economic data showed a deceleration across the board in November. Retail growth weakened to the slowest pace since the Covid-19 pandemic, while fixed-asset investment continued to contract and a decline in home prices showed no signs of abating.

Investors also stayed on the sidelines ahead of a November report on the US labour market due later on Tuesday, which would include a reading for October that was delayed by the longest-ever government shutdown. A strong reading would reduce the chances of monetary easing and could fuel anxiety over the stretched valuations of technology stocks among traders.