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Asian Stocks had a mixed start to the week, with Tokyo’s benchmark falling nearly 2% on Monday after the release of data showing weak factory activity, while US futures fell.
Oil prices rose by more than $1 per barrel.
In JapanThe Nikkei 225 fell 1.9% to 49,285.66 after the government reported weaker-than-expected corporate investment data.
Regional reports on manufacturing activity are being closely watched for signs of how the US President is donald trumpHigher tariffs are hurting Asian economies.
A survey of Japanese factory managers showed activity slowed in November. The S&P global Japan Manufacturing Purchasing Managers’ Index, or PMI, stood at 48.7 last month, a slight improvement from 48.2 in October, but still in contraction territory on a scale of zero to 100, where 50 marks the cutoff for expansion. This was the fifth consecutive month of contraction.
“The latest PMI data showed that Japan’s manufacturing sector continued to grapple with weak demand conditions in November, with companies reporting another solid decline in overall new business,” Annabel Fiddes, economics associate director at S&P Global Market Intelligence, said in a report.
China’s factory activity declined for the eighth consecutive month in November, according to an official survey released on Sunday, underscoring challenges for the country’s economy despite the extension of a trade truce between the US and China.
But Hong Kong’s Hang Seng rose 0.8% to 26,068.05.
Shares of online food delivery giant Meituan fell 1.5% after the company reported it suffered a net loss last quarter as intense competition in the delivery industry pushed prices down while the company’s revenue rose.
The Shanghai Composite Index rose 0.4% to 3,904.90.
In Seoul, the Kospi was almost unchanged at 3,926.20. Australia’s S&P/ASX 200 fell 0.3% to 8,583.30.
Taiwan’s Taiex lost 0.5% and India’s Sensex was up 0.3%.
Across Asia, PMI readings reflected weak factory activity for November, although exports from the region have been rising again in recent months, Shivan Tandon, Asia economist at Capital Economics, said in a note.
Despite uncertainty over the outlook for the US economy, consumer spending on Black Friday and Cyber Monday retailing bonuses was expected to exceed expectations.
Early Monday, futures for the S&P 500 were down about 0.7%, while futures for the Dow Jones Industrial Average were down 0.4%.
Trading for the Dow Jones Industrial Average, S&P 500 and Nasdaq was halted for hours Friday due to a technical problem at the Chicago Mercantile Exchange. CME said the problem was related to a failure in the CyrusOne data center.
During Friday’s brief post-Thanksgiving session, the S&P 500 rose 0.5% and the Dow rose 0.6%. The Nasdaq gained 0.7%.
Stocks rose last week on hopes of another rate cut from the Federal Reserve after falling in mid-November as investors worried about the durability of the frenzy around artificial intelligence.
Nvidia lost 1.8% on Friday, ending the month with a double-digit loss. Oracle fell 23% in November while Palantir Technologies sank 16%.
Some tech stocks recorded monthly gains, notably alphabetWhich surged nearly 14% due to excitement about the recently released Gemini AI model.
The central bank, which has already cut rates twice this year in hopes of supporting a slowing job market, is finding it increasingly difficult to decide on interest rates as inflation rises and the job market slumps. Cutting interest rates further could help support the economy as employment weakens, but it could also increase inflation.
The minutes of the Fed’s most recent meeting in October indicate that there are likely to be strong differences of opinion among policymakers about the Fed’s next move.
Investors also had an eye on retail stocks as they waited to see if buyers rush to take advantage of the annual Black Friday sales event. Macy’s fell 0.3% while Kohl’s rose 1.4%. Dick’s Sporting Goods dropped 0.5%. At specialty retailers, Abercrombie & Fitch rose 2.9% and American Eagle Outfitters rose 0.7%.
In other trading early Monday, U.S. benchmark crude oil gained $1.05 a barrel. International standard Brent crude also added $ 1.05 per barrel.
The US dollar fell to 155.57 JPY from 156.14 yen. The euro rose to $1.1602 from $1.1596.
Bitcoin fell 5.3% to $86,225.