Asian stock markets settled lower on Tuesday as expectations of a U.S. rate hike boosted the dollar and investors watched for signs of policy direction from President-elect Donald Trump.

Japan's benchmark index, Nikkei 225 lost 4.47 points or 0.03 percent to settle at 17,668.15. China's benchmark index, Shanghai Composite declined 3.39 points or 0.11 percent to close at 3,206.99.

South Korea's KOSPI fell 6.87 points or 0.35 percent to end at 1,967.53. Taiwan's TAIEX declined 9.37 points or 0.1 percent to end at 8,931.03.

On the other hand, Hong Kong's Hang Seng gained 101.69 points or 0.46 percent to end at 22,323.91. Singapore's Straits Times rose 10.28 points or 0.37 percent to end at 2,797.55