Asian equities decline on shaky economic indicators

Due to negative economic signals from Japan and the eurozone, the majority of Asian equities declined on Friday. Meanwhile, Hong Kong's Hang Seng index sank due to sharp losses in index heavyweight Chow Tai Fook Jewellery.

A U.S. market holiday prevented markets from seeing many overnight signals, and trading volumes were modest as a result. As investors' uncertainty about the direction of U.S. interest rates in the upcoming year intensified, the majority of regional exchanges were likewise expected to close the week unchanged.

Friday saw the Hang Seng perform the poorest among its peers, falling 1.5% due to an 11% decline in the shares of luxury goods retailer Chow Tai Fook Jewellery Group. The shop, which is a division of the Chow Tai Fook Group, reported significant earnings growth in the six months that ended on September 30.

Following a positive week, shares of significant real estate developers witnessed some profit-taking, which caused Chinese equities to drop as well. Property stocks have experienced significant increases due to expectations of increased state support for the industry, as Beijing created a whitelist of developers to facilitate easy access to funds.

All eyes were now focused on the China purchasing managers index data, which is expected next week, for more indications of economic activity. Despite this, Goldman Sachs has expressed optimism about the prospects for Chinese stocks through 2024 as the economy continues to strengthen.

Markets were also given bad signals by weak business activity data from the eurozone and Japan, particularly because both areas had negative GDPs in the third quarter. Later in the day, the November U.S. PMI data were scheduled.

(Sources: investing.com, reuters.com)