Asian markets delivered a mixed performance on Monday as a note of caution persisted with the year-end approaching. In Asia, the U.S. dollar remained buoyant supported by elevated U.S. Treasury yields, while oil and gold prices saw little movement.
The Shanghai Composite Index in China gained 0.21%, finishing at 3,407.33 as investors anticipated Tuesday's manufacturing PMI data. Conversely, Hong Kong's Hang Seng Index dropped by 0.24% to close at 20,041.42, with technology leader Baidu falling by 1.4%.
Following a series of gains, Japanese markets took a downturn. The Nikkei Index fell 0.96% to settle at 39,894.54, driven by declines in technology stocks and key market players. Meanwhile, the broader Topix Index decreased by 0.60% to 2,784.92, with SoftBank Group down by 0.8% and Fast Retailing declining by 1.6%.
The yen maintained its position near five-month lows against the dollar, pressured by rising U.S. yields.
In Seoul, stock markets faced a decline as legal proceedings targeted suspended President Yoon Suk Yeol regarding his brief imposition of martial law. Traders were also digesting data indicating a greater-than-expected drop in factory output for November. Consequently, the Kospi Index fell 0.22% to 2,399.49. Jeju Air shares plummeted by 8.7% following a tragic aircraft crash on Sunday that resulted in 179 fatalities.
South Korea's transportation ministry announced it is "considering a special inspection of (Boeing) B737-800 aircraft" in light of the incident.
In Australia, markets ended a streak of three positive sessions, with financials, property developers, and tech stocks leading the losses. The S&P/ASX 200 Index dropped 0.32% to 8,235, while the All Ordinaries Index decreased by 0.28% to close at 8,496.
Nonetheless, energy stocks and coal miners experienced gains, with Woodside Energy ascending 1% and Whitehaven Coal increasing by 2.5%.
Over in New Zealand, the S&P/NZX-50 Index advanced by 0.49%, closing at 13,270.01.
U.S. stocks fell on Friday, driven by an increase in 10-year Treasury Note yields to nearly an eight-month high, leading to widespread profit-taking ahead of the new year and dampening the expected Santa Claus rally.
The Dow Jones Industrial Average fell by 0.8%, ending its five-session winning streak but still rose 1.4% for the week. Both the S&P 500 and the Nasdaq Composite saw declines of 1.1% and 1.5% respectively, although they each retained gains of more than 1.5% for the week.
