Central Bank Outlooks Roil Asian Stock Markets

05:45 AM EST, 12/01/2025 (MT Newswires) -- Asian stock markets turned in a choppy Monday, on outlooks for central banks in the US and Japan, and as traders awaited fresh catalysts.

Hong Kong and Shanghai in the green, while Tokyo fell back. Other regional exchanges were similarly mixed.

In Japan, the Nikkei 225 opened evenly but declined through the day, finishing off 1.9% after Bank of Japan chief Kazuo Ueda said the central bank may raise its interest rates at its Dec. 18-19 policy meeting. The rate outlook strengthened the Japan yen, undercutting export issues.

The benchmark Nikkei 225 fell 950.63 to 49,303.28, as losing issues outnumbered gainers 179 to 45.

Leading the upside was Sumitomo Electric Industries, up 3.1%, while utility Tokyo Electric Power declined 9.7%.

In economic news, Japan's headline manufacturing purchasing managers index (PMI) rose to 48.7 in November from 48.2 in October, but still struck below the 50-mark that separates growth from contraction, reported S&P Global.

In Hong Kong, the Hang Seng Index opened higher and held ground, closing up 0.7% as investors read media reports indicating the US central bank is leaning towards a rate cut at its Dec. 9 to 10 meeting.

The broad gauge Hang Seng rose 174.37 to 26,033.26, as gaining issues outnumbered losers 71 to 17. The Hang Seng TECH Index gained 0.8% on the day, while the Mainland Properties Index rose 1%.

Leading the upside was smartphone components maker Sunny Optical Technology, gaining 6.2%, while toymaker Pop Mart International declined 4.3%.

On the mainland, the Shanghai Composite rose 0.7% to 3,914.01.

In economic news, the China manufacturing PMI dropped to 49.9 in November from 50.6 in October, reported S&P Global.

On the other regional exchanges, the S. Korean KOSPI fell 0.2%; the Taiwan TWSE declined 1%; the Australian ASX 200 declined 0.6%; the Singapore Straits Times Index was steady, and the Thai Set inclined 1.6%. In late trading in Mumbai, the Sensex was down 0.1%.

In other news, India's manufacturing PMI logged at 56.6 in November, down from 59.2 in October, reported S&P Global.

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