Asian shares end in the black amid thin volumes

Asian shares reversed early losses to end higher as oil prices stabilised following sharp falls overnight.

Japan’s Nikkei 225 closed up 0.58%, China’s Shanghai Composite ended up 0.86% and Hong Kong’s Hang Seng rose 0.37%.

Australian shares also ended on the front foot in holiday-thinned trade, with the benchmark S&P/ASX 200 up 1.15%, marking eighth consecutive days of gains.

The People’s Bank of China said on Monday that it would use various policy tools to maintain appropriate liquidity and reasonable growth in credit and social financing.

The central bank said it will keep the yuan stable as it presses ahead with reforms to help improve its currency regime, reiterating its prudent monetary policy implementation and saying it would keep its stance "neither too tight nor too loose".

"We will improve and optimize financing and credit structures, increase the proportion of direct financing and reduce financing costs," it said.

Early on Tuesday, the PBoC scaled back the use of a short-term lending tool in its open-market operations early Tuesday by auctioning CNY10bn of 7-day reverse-repurchase agreements at an interest rate of 2.25%, less than the CNY30bn offered a week ago

In commodity markets, crude oil prices steadied after falling more than 3% overnight, with Brent crude trading near 11-year lows amid reports that Iran plans to up exports by 500,000 barrels a day once economic sanctions are removed.

In currencies, China’s yuan slid to its lowest level against the US dollar since June 2011, with traders pointing to strong demand for the greenback into the year end.

On the corporate front, electronics giant Toshiba rallied following media reports that it intends to request an additional $2.5bn (£1.7bn) in credit to fund its restructuring after the $1.3bn accounting scandal earlier this year.

Smartphone maker Samsung Electronics fell on reports it plans to expand its mobile payment service in the US next year.

Asahi Group Holdings nudged higher after saying it was considering buying US-based soft drinks maker Talking Rain.

China's Hua Xia Bank was on the front foot on reports Deutsche Bank had agreed to sell its 20% stake in the lender to PICC Property and Casualty.

Shares of Imagi International Holdings surged in Hong Kong after it appointed non-executive director Leung Pak To as its chairman, replacing chairman Shan Jiuliang, whose whereabouts have been unknown since October.

In the Australian market, retailers JB Hi-Fi and Harvey Norman gained ground amid hopes of strong Christmas sales.

Mining giants BHP Billiton and Rio Tinto were in the red, however, despite firmer iron ore prices.