Markets in the Asia-Pacific region experienced a decline on Monday, following a downturn on the previous Friday, as investors paused their engagement with the AI sector. “[Friday] is a value-outperforms-growth day,” stated Jed Ellerbroek. “Investors exhibit a degree of skittishness regarding AI — not overtly pessimistic, but rather cautious, nervous, and hesitant.” Market participants in Asia are poised to focus on significant economic indicators from China, as the nation prepares to disclose its retail sales, fixed asset investment, and industrial output figures for November.

South Korea’s Kospi experienced a decline of 1.84%, concluding at 4,090.59, whereas the small-cap Kosdaq recorded a modest increase of 0.16%, finishing at 938.83. Memory chipmaker SK Hynix experienced a decline of 2.98%, whereas Samsung Electronics saw a decrease of 3.76%. Japan has released its fourth-quarter Tankan figures, with the index reflecting business optimism among large Japanese manufacturers rising to +15 for the fourth quarter, marking the highest point in four years. The most recent data reflects a +14 increase from the prior quarter, aligning with the forecasts of economists, while the non-manufacturing index for the fourth quarter registered a value of +34.

Australia’s S&P/ASX 200 experienced a decline of 0.72%, concluding the trading session at 8,635. On Sunday, the nation experienced its most severe gun assault in over three decades, resulting in a minimum of 15 fatalities. Japan’s Nikkei 225 experienced a decline of 1.31%, settling at 50,168.11, whereas the Topix saw an increase of 0.22%, reaching 3,431.47. The Hang Seng index in Hong Kong experienced a decline of 0.79%, whereas the mainland CSI 300 fell by 0.63% to 4,552.06, following the release of significant economic data from China.

Retail sales in China increased by 1.3% last month compared to the same period a year earlier, significantly falling short median projection of 2.8% growth, and decelerating from the 2.9% increase observed in the previous month. Industrial production increased by 4.8% in November compared to the same month last year, a slight decline from the 4.9% growth observed in the previous month and falling short of the anticipated 5% rise. On Friday in the U.S., the S&P 500 experienced a decline of 1.07%, pulling back from its previous record, while the Nasdaq Composite saw a decrease of 1.69%. The Dow Jones Industrial Average concluded the day with a decline of 0.51%, despite achieving a new intraday all-time high earlier in the session, as AI-related stocks faced pressure, with Broadcom plunging over 11% alongside declines in AMD, Palantir Technologies, and Micron.