Asian equities decline following a strong November, with mixed signals from PMIs

After posting impressive gains during November, the majority of Asian markets saw a little decline on Friday. Investors' attention is now focused on an impending speech by Fed Chair Jerome Powell for more clues on interest rate movements.

Sentiment was also generally restrained by China's conflicting economic signals because a private poll revealed an unexpected increase in industrial activity in November. However, the data was released the day after a government poll revealed ongoing deterioration in the industry.

Hong Kong's Hang Seng index dropped 0.5%, while China's Shanghai Shenzhen CSI 300 and Shanghai Composite indices dropped 0.8% and 0.3%, respectively.

The Purchasing Managers Index (PMI) data revealed a persistent downturn in manufacturing activity, which caused Australia's ASX 200 to fall 0.3%. Even yet, the ASX 200 was holding onto its almost 4% gain from November.

After recent statistics indicated a larger-than-anticipated decline in inflation, attention turned to the Reserve Bank of Australia's meeting next week, where the central bank is largely expected to leave interest rates on hold.

After rallying by 10.6% in November, South Korea's KOSPI fell 0.9%, significantly outperforming its Asian counterparts. The manufacturing and export performance of South Korea improved somewhat through November, according to data that was made public on Friday.

India's Nifty 50 index futures indicated a good start as the country's economy expanded more than anticipated in the September quarter, according to figures on the gross domestic product released on Thursday.

Moreover, following an overnight increase in the dollar, regional markets saw profit-taking as the PCE price index data—the main inflation indicator used by the Federal Reserve—showed some stickiness in inflation through October.

The reading was given only one day before Fed Chair Jerome Powell's speech on Friday. Before the Fed's last meeting of the year in mid-December, Powell is anticipated to give more clues on interest rates.

Though investors are also watching for any indications about when the central bank intends to start reducing rates in 2024, it is generally assumed that it will maintain interest rates at current levels.

One of the major factors propelling an Asian stock rise through November was easing concerns about an aggressive Fed.

(Sources: investing.com, reuters.com)