Asian markets fell sharply as investors turned cautious ahead of key US employment data that could influence the outlook for interest rates.
Japan’s Nikkei 225 dropped 1.2% to 49,544.21 after early factory data pointed to a slight slowdown in manufacturing. The S&P Global flash PMI rose to 49.7 from 48.5 in November, remaining just below the 50 level that separates expansion from contraction. Markets are also focused on Friday’s Bank of Japan policy meeting, where an interest rate rise is widely expected and could unsettle global bond and cryptocurrency markets.
Chinese equities also moved lower following weaker-than-expected November data released on Monday. Retail sales rose by just 1.3% year on year, the slowest pace since the pandemic in 2022, while lending and investment figures also softened. Hong Kong’s Hang Seng slid 1.9% to 25,139.16 and the Shanghai Composite fell 1.2% to 3,820.85.
Elsewhere in the region, South Korea’s Kospi dropped 1.5% to 4,027.83, Taiwan’s Taiex lost 1.1%, and Australia’s S&P/ASX 200 declined 0.6% to 8,583.00.
US markets were also weaker, with the tech-heavy Nasdaq Composite down 0.6%, led by sharp falls in Coinbase and Strategy as sentiment across the broader crypto market continued to fade. The S&P 500 slipped 0.2%, while the Dow Jones Industrial Average edged 0.1% lower.
