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A line of trucks parked outside a shipping terminal in Yokohama, Japan, on Monday, Dec. 4, 2023.
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Asia-Pacific markets fell Friday, mirroring moves on Wall Street that was weighed down by a hotter-than-expected producer price inflation reading.
The producer price index, which measures wholesale inflation, climbed 0.4% for November, higher than the Dow Jones estimate of 0.2%. On an annual basis, PPI advanced 3%, its biggest rise since the 12 months ended February 2023.
In Asia, investors weighed China's stimulus pledges after Beijing on Thursday affirmed its recent policy shifts and stressed on plans to boost growth following a high-profile meeting.
Investors also assessed the Bank of Japan's Tankan survey, which showed a higher-than-expected optimism among large Japanese manufacturers.
The Tankan index for large manufacturing firms climbed to 14 in the quarter ended December, up from 13 in the September quarter and beating the 12 expected from economists polled by Reuters.
The index tracks business sentiment in the country among large companies and contributes to the BOJ's considerations when forming monetary policy. A higher figure means that optimists outnumber pessimists, and vice versa.
India will also release its wholesale inflation figures for November later in the day. Economists polled by Reuters expect India's wholesale inflation rate to come down to 2.2% from October's 2.36%. The country's consumer inflation dropped from a 14-month high, according to data released Thursday.
Futures for Hong Kong's Hang Seng index stood at 20,219, pointing to a weaker open compared to the HSI's close of 20,397.05.
Japan's benchmark Nikkei 225 fell 0.71%, while the broad-based Topix saw a larger loss of 0.85%.
South Korea's Kospi was 0.22% down, but the small-cap Kosdaq was marginally above the flatline.
Australia's S&P/ASX 200 started the day down 0.66%.
Overnight in the U.S., all three major indexes slid, with the Dow Jones Industrial Average losing 0.53% to mark its sixth straight losing day.
The tech-heavy Nasdaq retreated from the 20,000 mark and shed 0.66%, while the broad market S&P 500 shed 0.54% .
— CNBC's Sean Conlon and Hakyung Kim contributed to this report.
CNBC Pro: Want to cash in on the emerging market boom? Here are 2 of HSBC's 'best stock ideas' with over 50% upside potential
A pick-up in consumer demand, improving economic growth and attractive stock market valuations have contributed to the popularity of emerging markets (EM) this year.
HSBC is sticking to its "cautiously constructive" stance on them in 2025, as U.S. President-elect Donald Trump prepares to return to office in January.
"There is no sugar coating that tariffs and a strong USD are downside risks," the investment bank's analysts said, as they revealed their best stock ideas.
Among their picks were two lesser-known names, both with over 50% upside potential.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
'Magnificent 7' isn't going to 'quietly end the year,' Chris Verrone says
The "Magnificent Seven" may be due for more big moves heading into 2025, according to Strategas Research Partners head of technical analysis Chris Verrone.
"The Mag 7 is not going quietly to end the year," he wrote in a Thursday note. "The most important thing on our screens the last few weeks has been the return of mega-cap leadership after a lengthy rest."
Verrone noted that Amazon, Meta Platforms, Apple, Alphabet and Tesla all hit fresh highs in the previous session. Those stocks have seen year-to-date gains of more than 50%, more than 78%, nearly 29%, more than 37% and more than 69%, respectively.
During Thursday's trading day, the CNBC Magnificent Seven index hit a new 52-week high.
— Sean Conlon
S&P 500 on track for seventh strongest year in history, according to Canaccord Genuity Capital Markets
The S&P 500 has risen around 27% this year, hovering around its all-time highs. This puts the index on pace to notch its seventh strongest year on record, Canaccord Genuity Capital Markets wrote in a Thursday note.
S&P YTD chart
Last year, the benchmark cinched a 24% rise.
"Back-to-back gains of 20% or more, although rare, have historically led to further upside," analyst Michael Welch said. "The mid-90s was the only other period when the SPX had back-to-back >20% gains."
He added: "The current environment continues to track the prior non-recessionary periods, with the S&P 500, Nasdaq Comp., and Russell 2000 all having gains across one, two, and three-month time periods."
— Lisa Kailai Han
Jeremy Siegel doesn't think the stock market in 2025 will beat the rally from the past two years
Next year's outlook seems tepid in comparison to previous years, according to Jeremy Siegel, WisdomTree senior economist and finance professor at the University of Pennsylvania's Wharton School.
"I don't think 2025, as good as everyone hopes the economy will be, given valuations, is going to be as good as 2023, 2024," Siegel told CNBC's "Squawk on the Street" on Thursday. "We'll probably see 0-10, 5-10 [percent gains.]"
Siegel added that there may be rotation in the market next year, noting that the recent surge of "Mag 7" tech stocks has been nearly unprecedented. "I don't know if it's just portfolio catch-up … some of that enthusiasm for some of those stocks very well might unwind next year," he said.
— Pia Singh
English (US)