BANGKOK (AP) — U.S. futures dropped, and Asian markets had a mixed start to the week. In Tokyo, the Nikkei 225 fell almost 2% following disappointing factory activity data. This decline reflects ongoing challenges within Japan’s economy.
Japan reported its corporate investment levels were lower than expected. The S&P Global Japan Manufacturing Purchasing Managers’ Index (PMI) showed a marginal improvement to 48.7 from 48.2 in October, yet it remains in contraction territory (below 50 indicates a decline). This marks the fifth consecutive month of contraction. Annabel Fiddes from S&P Global noted that weak demand conditions continue to impact Japan’s manufacturing sector.
Over in China, factory activity registered its eighth month of decline, highlighting economic struggles despite a temporary truce in U.S.-China trade tensions.
Interestingly, while the Nikkei dipped, Hong Kong’s Hang Seng index rose by 0.4%. The Shanghai Composite gained 0.7%, showing some positive momentum in the region.
In a broader view, a recent survey indicated that manufacturing activity across Asia is weak, but there have been signs of recovering exports. Shivaan Tandon, an economist at Capital Economics, pointed out this dichotomy, suggesting that while local manufacturing struggles, external demand could provide a silver lining.
In the tech sector, major delivery service Meituan faced challenges and reported a net loss despite increased revenues, largely due to fierce competition. Meanwhile, the U.S. stock market experienced minor fluctuations, influenced by an ongoing conversation about interest rates. Investors speculated whether the Federal Reserve would cut rates again in response to employment and inflation dynamics.
Black Friday shopping numbers are also generating attention. Early reports indicate consumer spending exceeded expectations. This trend has brought retail stocks into focus, with mixed performances among major chains.
As the market evolves, the volatility hints at a cautious optimism. With oil prices rising slightly and the dollar and euro exhibiting slight shifts, the coming days will reveal more about the global economic landscape.
For more detailed information, you can explore the S&P Global report on manufacturing activity.
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Japan, President Donald Trump, manufacturing sector
