Asian stocks close strongest month since January, US PCE data eyed

Asian stocks edge higher on Thursday due to investors' optimism improved, backed by indications of economic recovery and the weaker US Dollar (USD). Investors await the US Core Personal Consumption Expenditure Price Index (PCE) for October, which is expected to ease to 0.2% MoM and 3.5% YoY.

China’s Shanghai was up 0.20% to 3,027, the Shenzhen Component Index fell 0.19% to 9,726, Hong Kong’s Hang Sang rose 0.26% to 17,037, South Korea’s Kospi was up 0.30%, India’s NIFTY 50 was down 0.17%, and Japan’s Nikkei gained 0.50%.

Earlier Thursday, China’s National Bureau of Statistics (NBS) revealed that the nation’s Manufacturing PMI came in at 49.4 in November from 49.5 contraction registered in October, below the market consensus of 49.7 Additionally, the Non-Manufacturing PMI fell to 50.2 in the same month versus 51.1 expected and 50.6 in October. Investors are mounting pressure on Chinese authorities to implement more stimulus measures after Beijing is preparing to issue 1 trillion yuan ($140 billion) in bonds to bolster infrastructure expansion.

In Japan, Bank of Japan (BoJ) board member Toyoaki Nakamura said on Thursday that the central bank will likely require more time to phase out its massive stimulus, downplaying the possibility of the central bank's negative interest rate policy ending soon.

Apart from this, Japanese Retail Trade in October arrived at 4.2% YoY compared to the forecast of 5.9%. On a monthly basis, the figure declined to 1.6% from a 0.1% drop in the previous reading.

South Korea’s Factory Output registered its biggest decline in ten months in October, owing to lower chip production, raising concerns about the prospects for Asia's fourth-largest economy.

Furthermore, the Bank of Korea (BoK) maintained its benchmark interest rate at 3.5% on Thursday, the seventh consecutive pause. The BoK revised up its inflation prediction for 2024 to 2.6% from 2.4%, but cut its growth projection to 2.1% from 2.2%.

In India, the GDP growth number for the second quarter will be due later on Thursday, which is expected to grow at 6.8% in the July–September quarter compared with a year earlier.

Moving on, market players will monitor the US Core Personal Consumption Expenditure inflation report will be released in the American session. Federal Reserve (Fed) Chair Jerome Powell is also scheduled to speak on Friday and is likely to provide important insights into the Fed's policy strategy ahead of its December meeting. Additionally, the Chinese Caixin Manufacturing PMI will be released on Friday.