By Chao Deng 

Most Asian markets fell after Chinese trade data signaled weakening global and domestic demand, the latest evidence that the world's No. 2 economy is stalling.

The Shanghai Composite Index was flat while the Hang Seng Index fell 0.4%.

Australia's S&P/ASX 200 is down 0.6%, Japan's Nikkei Stock Average fell 1% and Indonesia's JSX lost 3%.

China's exports fell 3.7% in September from a year earlier in U.S. dollar terms, after a drop of 5.5% in August, data from the General Administration of Customs showed Tuesday. While that is a narrower fall than economists expected, it threatens to derail Beijing's growth target of about 7% for the year. Third-quarter growth figures are set for release next week.

Imports fell 20.4% from a year earlier compared with a 13.8% decline in August, though a rough breakdown showed a rise in crude imports.

While much of the fall in imports can be attributed to falling commodity prices, "a lot of people would argue that the fall in imports is due to weak Chinese demand," said Julian Evans-Pritchard, China economist at Capital Economics. "The big picture is that a 20% fall in imports looks bad."

China's slowdown has shaken global markets and regional economies that rely heavily on Chinese consumption. That pressure has sent emerging-market currencies and commodities to multiyear lows.

Commodities-related assets fell Tuesday, with a benchmark of energy stocks in Australia down 2.3%. Hong Kong-listed Chinese firms were off 0.9%, with PetroChina Co. and China Petroleum & Chemical Corp. both down 1.8%.

Base metal prices fell in Asia trade Tuesday with three-month copper and aluminum prices on the London Metal Exchange down by 0.6% respectively to $5,255 a ton and $1,585 a ton. Zinc was down 1.6% to $1,812 a ton.

Both the Malaysian ringgit and Indonesian rupiah were down more than 1% against the U.S. dollar after the trade data. The two currencies hit their strongest levels in months last week, when a rebound in oil prices lifted commodities-related assets.

Before the data, Beijing guided the yuan stronger by the biggest percentage in nearly one year. It fixed the currency up 0.28% at 6.3231 to one U.S. dollar. The onshore yuan was last at 6.3363, near its strongest level since China's devaluation of the yuan in August.

In Australia, which counts China among its biggest trading partners, the Australian dollar was down 0.7% against the U.S. dollar at $0.7310. It is also down from as high as $0.7382 Monday, which marked its strongest level since August.

China's data could stoke hopes for more stimulus. The Shanghai Composite Index had rallied 10% from its bottom on Aug. 26 as of Monday's close, on expectations for new measures after the central bank announced a program to boost lending over the weekend.

While expectations of easier lending conditions spurred gains in China and the rest of the region last week, "there's probably nothing in sight in terms of fundamentals supporting the recent rally," said Christopher Wong, a senior portfolio manager at Aberdeen Asset Management. "We have to wait for China's situation to stabilize."

Meanwhile, Brent crude oil prices were up 0.6% at $50.57 a barrel in Asia trade, recovering after falling more than 5% overnight.

Prices in the U.S. fell after the Organization of the Petroleum Exporting Countries reported that its output rose to a more-than-three-year high last month, pointing to supply glut.

Gold prices were down 0.9% at $1,154 a troy ounce. Prices are down from a more than $1,163 reached late Monday in Asia, marking the highest since July.

Investors also are looking to Chinese inflation data due for release on Wednesday, according to the National Bureau of Statistics of China.

Biman Mukherji contributed to this article.

Write to Chao Deng at Chao.Deng@wsj.com

(END) Dow Jones Newswires

October 13, 2015 02:11 ET (06:11 GMT)