Asian stocks mixed as oil prices surge over $1/bbl

Across Asia, PMI readings reflected weak factory activity for November, though exports from the region have been rebounding in recent months. Consumer spending during the Black Friday and Cyber Monday retailing bonanza was expected to exceed expectations, despite uncertainty over the outlook for the US economy

US futures fell and Asian shares began the week mixed, with Tokyo’s benchmark falling nearly 2 per cent on Monday after the release of data showing weak factory activity. Oil prices surged more than $1 a barrel.

In Japan, the Nikkei 225 declined 1.9 per cent to 49,303.28 after the government reported weaker than expected corporate investment data. Regional reports on manufacturing activity are being closely watched for signs of how US President Donald Trump’s higher tariffs are affecting Asian economies. A survey of Japanese factory managers showed activity slowing in November.

The S&P Global Japan Manufacturing Purchasing Managers index, or PMI, was at 48.7 last month, a slight improvement from 48.2 in October but still in contractionary territory on a scale of zero to 100 where 50 marks the cutoff for expansion. It was the fifth straight month of contraction.

“The latest PMI data showed that Japan’s manufacturing sector continued to struggle with weak demand conditions in November, with firms signalling another solid decline in overall new business,” Annabel Fiddes, economics associate director at S&P Global Market Intelligence, said in a report.