Asia-Pacific markets commenced December on a mixed note Monday, as traders evaluated new manufacturing data from China alongside increasing anticipations of a U.S. Federal Reserve rate cut this month. Market participants are assigning an 87.4% probability to a quarter-point rate reduction at the forthcoming Federal Reserve meeting scheduled for December 10, as per indication. Hong Kong’s Hang Seng Index increased by 0.81%, whereas the mainland CSI 300 rose by 1.1% to finish at 4,576.49. In November, a private survey revealed that China’s factory activity experienced an unexpected contraction, attributed to persistently weak domestic demand that continues to overshadow the world’s second-largest economy. The RatingDog China General Manufacturing PMI, as per reports, fell to 49.9 in November, falling short of analysts’ forecasts of 50.5 according to a Reuters poll.

A reading exceeding the 50 benchmark level signifies expansion, whereas a reading below that level denotes contraction. The indicator reflects official data published on Sunday, indicating a modest improvement in China’s factory activity to 49.2 in November; however, it continues to indicate contraction for the eighth consecutive month. Services experienced a decline as the boost from previous holidays diminished. Firms listed in Hong Kong that are linked to digital assets experienced a significant decline following a warning from the People’s Bank of China regarding illegal activities associated with digital currencies and a renewed wave of speculation, as stated in a release from the central bank on Saturday. Shares of Yunfeng Financial, supported by Jack Ma, and Bright Smart Securities & Commodities Group experienced a decline exceeding 7%, whereas Guotai Junan saw a drop of up to 3%.

Japan’s benchmark Nikkei 225 index experienced a decline of 1.89%, concluding at 49,303.28, while the Topix index saw a retreat of 1.19%, finishing at 3,338.33. Among the laggards on the Nikkei 225 index were electrical equipment company Fujikura, which experienced a decline of 8.94%, Sumitomo Pharma, which saw a drop of 5.86%, and Advantest, which fell by 4.25%. South Korea’s Kospi index experienced a decline of 0.16%, settling at 3,920.37, whereas the small-cap Kosdaq saw an increase of 1.06%, reaching 922.38. Australia’s ASX/S&P 200 experienced a decline of 0.57%, settling at 8,565.2. India’s Nifty 50 declined by 0.15%, while the Sensex index experienced a decrease of 0.13%. U.S. equity futures exhibited minimal fluctuations during the early hours in Asia, following a week of gains.

On Friday in the United States, market resumed activity following the Thanksgiving holiday with a truncated trading session. The Nasdaq Composite advanced 0.65%, concluding the day at 23,365.69, marking its fifth consecutive day of gains. Meanwhile, the S&P 500 experienced an increase of 0.54%, concluding at 6,849.09. The Dow Jones Industrial Average increased by 289.30 points, representing a rise of 0.61%, concluding at 47,716.42.