Asian stocks start December lower, India’s Nifty 50 hits all-time high on the robust GDP data

Most Asian stocks edge lower on Friday amid the cautious mood in the market, despite the growing expectations that the Federal Reserve (Fed) and European Central Bank (ECB) are likely to cut rates, beginning in the middle of 2024.

At press time, China’s Shanghai was up 0.02% to 3,031, the Shenzhen Component Index declined 0.04% to 9,734, Hong Kong’s Hang Sang dropped 0.24% to 17,001, South Korea’s Kospi dropped 1.01%, Japan’s Nikkei was down 0.17% and India’s NIFTY 50 climbed 0.72% to 20,276, about 5 points away from its all-time high

India's Nifty 50 set a new high on Friday following stronger-than-expected economic growth in the September quarter, which fueled confidence about the Indian economic outlook. That being said, the Indian economy expanded 7.6% in the July–September quarter of the current fiscal year, marking the world’s fastest-growing major economy.

In China, mixed economic signals also kept optimism in check. Early Friday, the Chinese Caixin Manufacturing PMI came in at 50.7 in November from the previous reading of 49.5, above the market consensus of 49.8. However, the NBS PMI on Thursday showed persistent weakness in manufacturing activity and services sectors.

Apart from this, Japan's manufacturing activity contracted at the fastest pace in nine months, while South Korea's factory activity remained stable.

Looking ahead, investors await the US ISM Manufacturing PMI data. The November figure is estimated to climb to 47.6 from 46.7. Market players will take more cues from the Fed Chair Jerome Powell and the Fed's Goolsbee about further monetary policy and interest rate paths. Next week, attention will shift to the Reserve Bank of Australia (RBA) meeting, which is widely expected to keep interest rates on hold.