Asia-Pacific markets opened December mixed on Monday, as traders analyzed new manufacturing data from China and rising expectations of a rate cut by the US Federal Reserve this month.
Traders estimate an 87.4% chance of a quarter-point interest rate cut for the upcoming Fed meeting on Dec. 10, according to the CME FedWatch Tool.
Hong Kong’s Hang Seng index added 0.81%, while the mainland’s CSI 300 rose 0.75%.
Chinese factory activity unexpectedly contracted in November, according to a private survey released on Monday, as weak domestic demand continued to cast a shadow over the world’s second-largest economy.
The RatingDog China General Manufacturing PMI, conducted by S&P Global, fell to 49.9 in November, short of analysts’ expectations of 50.5 in a Reuters poll. A reading above the reference level of 50 suggests expansion, while one below indicates contraction.
The gauge follows official data released on Sunday showing that Chinese factory activity improved slightly to 49.2 in November, but remained in contraction for an eighth straight month. Services weakened as growth from earlier holidays faded.
Hong Kong-listed firms with exposure to digital assets fell after the People’s Bank of China warned of illegal activities linked to digital currencies and a resurgence in speculation, according to a statement the central bank issued on Saturday, SEEbiz reported.
Shares of Jack Ma-backed Yunfeng Financial and Bright Smart Securities & Commodities Group fell more than 7%, while Guotai Yunan fell as much as 3%.
Japan’s benchmark Nikkei 225 index fell by 1.82%, and the Topix index retreated by 1.08%. Among the biggest decliners on the Nikkei 225 were electrical equipment firm Fujikura, down 8.11%, Sumitomo Pharma, down 5.82% and Advantest, down 4.74%.
South Korea’s Kospi rose 0.11%, while small-cap Kosdaq advanced 1.46%.
Australia’s ASX/S&P 200 fell 0.45%.
India’s Nifty 50 added 0.33% and the Sensex index was higher by 0.38%.
