Asian markets started the week on a mixed note Monday, with Tokyo’s benchmark sliding nearly 2% after data showed weak factory activity, while U.S. futures also declined. Oil prices surged over $1 a barrel amid market volatility.
In Japan, the Nikkei 225 fell 1.9% to 49,285.66 following weaker-than-expected corporate investment figures. A survey of Japanese manufacturers showed activity slowing in November, with the S&P Global Japan Manufacturing PMI at 48.7, marking the fifth consecutive month of contraction. “The latest PMI data showed Japan’s manufacturing sector continued to struggle with weak demand conditions,” said Annabel Fiddes, economics associate director at S&P Global Market Intelligence.
China’s factory activity also contracted for the eighth straight month in November, highlighting challenges for the country’s economy despite an extension of the U.S.-China trade truce.
However, Hong Kong’s Hang Seng index rose 0.8% to 26,068.05, while the Shanghai Composite climbed 0.4% to 3,904.90. In South Korea, the Kospi remained nearly flat at 3,926.20, Australia’s S&P/ASX 200 dipped 0.3% to 8,583.30, Taiwan’s Taiex lost 0.5%, and India’s Sensex gained 0.3%.
Shares of Meituan, China’s major online food delivery firm, fell 1.5% after reporting a net loss due to competitive pricing pressures, even as revenues increased.
Across Asia, weak factory activity dominated November PMIs, though exports from the region have been rebounding, according to Shivaan Tandon, Asia economist for Capital Economics. Consumer spending during Black Friday and Cyber Monday is expected to surpass expectations despite uncertainty about the U.S. economic outlook.
Early Monday, U.S. futures showed the S&P 500 down nearly 0.7% and the Dow Jones Industrial Average losing 0.4%. Markets were previously affected by a technical outage at the Chicago Mercantile Exchange, which halted trading for the Dow, S&P 500, and Nasdaq on Friday. Despite the disruption, indices finished the short post-Thanksgiving session higher, with the S&P 500 up 0.5%, the Dow gaining 0.6%, and Nasdaq rising 0.7%.
Tech stocks faced a mixed month. Nvidia dropped 1.8% on Friday, closing November with double-digit losses, while Oracle and Palantir Technologies fell 23% and 16% respectively. Alphabet gained nearly 14% after launching its Gemini AI model.
Investors are closely watching the Federal Reserve’s next move on interest rates. With inflation rising and employment slowing, the central bank faces a difficult choice: further rate cuts could support the economy but also stoke inflation.
Retail stocks saw varied movements early Monday, with Macy’s down 0.3%, Kohl’s up 1.4%, Dick’s Sporting Goods down 0.5%, Abercrombie & Fitch up 2.9%, and American Eagle Outfitters up 0.7%.
In commodities, U.S. crude oil rose $1.05 per barrel, with Brent crude also gaining $1.05 per barrel. Currency markets saw the U.S. dollar fall to 155.57 Japanese yen from 156.14 yen, while the euro rose slightly to $1.1602. Bitcoin fell 5.3% to $86,225.
