Asia markets slip as China manufacturing weakens

December 01, 2025 (MLN): Asia markets opened December mostly lower on Monday as investors reacted to disappointing manufacturing data from China and growing expectations of a U.S. Federal Reserve rate cut later this month.

Sentiment across the region was cautious, with traders closely watching global economic signals while pricing in an 87.4% likelihood of a quarter-point rate cut at the Fed’s December 10 meeting, according to the CME FedWatch Tool.

Hong Kong’s Hang Seng Index slipped 0.13% at the open, while mainland China’s CSI 300 inched up 0.28% despite fresh signs of economic weakness, according to the CNBC.

A private survey showed China’s manufacturing sector unexpectedly contracted in November, with the RatingDog China General Manufacturing PMI falling to 49.9 below analysts’ expectations of 50.5 and signaling shrinking industrial activity.

This decline followed official data released Sunday, which reported factory output at 49.2 in November, marking the eighth consecutive month of contraction, while the services sector also softened as post-holiday momentum faded.

Market pressure deepened in Hong Kong as companies linked to digital assets tumbled after the People’s Bank of China warned of illegal digital currency activities and the resurgence of speculative behavior.

Shares of Yunfeng Financial and Bright Smart Securities & Commodities Group dropped more than 7%, while Guotai Junan fell up to 3%.

Japanese markets also retreated, with the Nikkei 225 losing 1.3% and the Topix down 0.72%.

Among the biggest decliners on the Nikkei were Fujikura, which plunged 8.11%, followed by Sumitomo Pharma with a 5.82% drop, and Advantest, which slid 4.74%.

In South Korea, the Kospi fell 0.66%, although the smaller-cap Kosdaq index posted a strong 1.29% gain. Australia’s S&P/ASX 200 was also weaker, edging down 0.23%.

U.S. equity futures were little changed during early Asian hours after Wall Street wrapped up a positive, shortened session on Friday.

The Nasdaq Composite climbed 0.65% to 23,365.69, marking its fifth straight day of gains. The S&P 500 rose 0.54% to close at 6,849.09, while the Dow Jones Industrial Average added 289.30 points, or 0.61%, finishing at 47,716.42.

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