Asia-Pacific markets kicked off December with mixed results on Monday as investors analyzed new manufacturing statistics from China and growing hopes of a U.S. Federal Reserve interest rate reduction this month.
Investors are factoring in a 87.4% probability of a quarter-point rate decrease during the upcoming Fed meeting on December 10, as per the CME FedWatch Tool.
Hong Kong’s Hang Seng Index rose by 0.81%, while the mainland CSI 300 gained 0.75%.
China’s manufacturing activity unexpectedly shrank in November, according to a private survey issued on Monday, as weak domestic demand continued to weigh on the world’s second-largest economy.
The RatingDog China General Manufacturing PMI, conducted by S&P Global, fell to 49.9 in November, below analysts’ forecast of 50.5 in a Reuters poll. A score above 50 indicates expansion, while a score below it signals contraction.
This index comes after official data released on Sunday reflecting a slight improvement in China’s manufacturing activity to 49.2 in November, yet it remained in contraction for the eighth month in a row. The services sector weakened as the boost from earlier holidays dissipated.
Shares of Hong Kong-listed companies involved in digital assets dropped after the People’s Bank of China issued a warning regarding illegal activities related to digital currencies and a resurgence in speculation, as stated by the central bank on Saturday.
Stocks of Yunfeng Financial backed by Jack Ma and Bright Smart Securities & Commodities Group plummeted over 7%, while Guotai Junan decreased by as much as 3%.
Japan’s benchmark Nikkei 225 index dropped 1.82%, and the Topix index decreased by 1.08%. Among the worst performers on the Nikkei 225 were electrical equipment manufacturer Fujikura, down 8.11%, Sumitomo Pharma, which fell 5.82%, and Advantest, which saw a decrease of 4.74%.
South Korea’s Kospi index rose 0.11%, while the small-cap Kosdaq improved by 1.46%.
Australia’s ASX/S&P 200 fell by 0.45%.
India’s Nifty 50 increased by 0.33%, and the Sensex index was up 0.38%.
U.S. equity futures showed little movement during early Asian trading after a week of gains.
On Friday in the U.S., Wall Street returned from the Thanksgiving break for a truncated trading day. The Nasdaq Composite increased 0.65% to close at 23,365.69, marking its fifth consecutive day of increases.
In the meantime, the S&P 500 rose 0.54% to finish at 6,849.09. The Dow Jones Industrial Average added 289.30 points, or 0.61%, concluding at 47,716.42.
— Report contributed by CNBC’s Anniek Bao, Sean Conlon, and Sarah Min.
