China’s Caixin PMI boosts Asian shares

Asian stock markets mainly advanced on Monday, led by gains in Chinese shares following positive factory activity data. However, threats of more tariffs from U.S. President-elect Donald Trump limited overall gains. China’s factory activity expanded in November, with the purchasing managers’ index (PMI) rising to 50.3 from 50.1 in October. This marks the highest reading since June, driven by more substantial output and new orders. The positive factory readings came after Beijing implemented aggressive stimulus measures to support economic growth. Trump threatened to impose 100% tariffs on goods from BRICS nations if they move to undermine the U.S. dollar by creating or backing alternative currencies. He emphasized that countries attempting to replace the dollar in global trade would face severe economic consequences.

Chinese PMIs boost Asian markets

South Korea’s index gained 0.2%, while the Philippines’ index climbed 0.8%. Malaysia’s index rose 0.5%, and Indonesia’s inched 0.2% higher. Japan’s Nikkei index edged up 0.2% despite data showing the country’s factory activity shrank for the fifth consecutive month. Australia’s index inched up 0.1% after data showed the country’s retail sales climbed more than expected in October. Markets will be focused on key economic cues this week, including Australia’s third-quarter GDP figures and November U.S. job data. While positive Chinese PMIs provided some respite, Trump’s tariff threats underline the fragile nature of recent gains in Asian markets. Investors will closely monitor further developments and economic indicators in the coming week.