Shares in Asia rose Tuesday after the International Monetary Fund added the Chinese yuan to its basket of reserve currencies, and before the release of regional manufacturing gauges.

Japan's Nikkei Stock Average rose 1%, Australia's S&P/ASX 200 rose 1.7% and South Korea's Kospi gained 0.9%.

The IMF's decision Monday marks a milestone in China's ascendancy as a global economic power, by giving the yuan reserve currency status alongside the dollar, euro, pound and yen. The move, which for Beijing is a matter of prestige, could also help accelerate a mild pickup in international demand for the currency when it becomes effective late next year.

Despite the newly conferred status, the "decision does not imply immediate strengthening of the [yuan] exchange rate," said a report by ANZ Research.

The onshore Chinese yuan closed at 6.3981 to one U.S. dollar Monday afternoon in Asia, ahead of the IMF's decision. It touched 6.3988 intraday, its weakest level against the dollar since Aug. 27.

Traders say the central bank bought up the offshore yuan through a Chinese bank on Monday to narrow the gap between the currency and its onshore counterpart.

The offshore Chinese yuan was last at 6.4318 against the U.S. dollar, 0.1% weaker than late Monday in Asia. Overnight in Asia, the offshore yuan traded as strong as 6.4146 against the U.S. dollar after the IMF's announcement.

Later Tuesday, China is due to release its latest official reading on factory activity for the month of November. A flurry of private readings will also provide the latest reading on the region's manufacturing activity.

The country's official manufacturing purchasing managers index contracted for the third consecutive month in October from a month earlier. While economists say activity has stabilized, the sector is still plagued by overcapacity, falling prices and weak demand, denting hopes that factories will lead the world's second-largest economy to a fourth-quarter turnaround.

Declines in retail shares after the Black Friday holiday shopping weekend pressured U.S. stocks Monday. Early signs of spending showed brick-and-mortar stores faced difficulties.

In Australia, the banking sector led the benchmark higher and materials stocks made more moderate gains, though iron ore tumbled to a fresh near-decade low. Spot iron ore fell 1.6% on Monday to $42.80 a ton, according to The Steel Index.

The Reserve Bank of Australia isn't expected to move rates at its meeting Tuesday, although Michael McCarthy, chief market strategist at CMC Markets, said a shift in the bank's language toward easing would likely support shares and push the Australian dollar weaker. The local dollar was last up 0.1% at $0.7235.

Brent crude oil, the global benchmark, fell 0.3% to $44.50 a barrel. U.S. oil prices fell 0.1% on Monday after government data showed U.S. production is falling more slowly than expected.

Gold prices were down 0.1% at $1,064 a troy ounce.

Robb M. Stewart contributed to this article.

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

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

November 30, 2015 20:55 ET (01:55 GMT)