China's Shanghai Composite index fell 0.42 percent to 3,364.65 after new data showed China's services activity expanded at a slower pace in November, pressured by easing new business growth. The market is giving up some of the recent gains after hitting two week highs.
However, losses were capped as the People's Bank of China extended its support for the yuan by setting the daily reference rate higher.
Hong Kong's Hang Seng index ended marginally lower at 19,742.46. Geopolitical tension remained in place after Israel threatened to attack the Lebanese state if its truce with Hezbollah fails.
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