In early November, Asian stock markets showed a mixed picture as Japan's Nikkei 225 dropped 2.6% due to high expectations-driven pressure following Wall Street's decline. However, China's markets stood out, with the Hang Seng in Hong Kong rising by 0.8% and the Shanghai Composite index initially showing gains before slipping slightly in afternoon trading. The Bank of Japan's decision to hold its benchmark rate at 0.25% was in line with market expectations, as the Japanese yen traded lower against the dollar.
Amidst this, China's factory activity rebounded with the official manufacturing purchasing managers’ index hitting 50.1, marking a return to growth after five months of contraction. Australia's S&P/ASX 200 saw a 0.5% drop, influenced by the producer price index rising 3.9% year-on-year in the third quarter, signaling a slight slowdown compared to previous quarters. Additionally, South Korea's Kospi and Taiwan’s Taiex also experienced declines, impacted by factors such as a drop in Apple's chip supplier's stock and Apple's own sales revenue decline in China reported in its recent quarterly earnings.
In the U.S., the S&P 500 faced its worst day in eight weeks, dropping 1.9% amid Big Tech declines, erasing its gains for the month. Major tech companies like Microsoft and Meta Platforms reported strong profits but faced stock declines, affecting market performance. In the bond market, Treasury yields fluctuated following mixed reports on the U.S. economy, with inflation measures close to the Federal Reserve's target and indications of moderate wage growth. Oil prices saw an increase, with U.S. benchmark crude rising to $70.58 per barrel and Brent crude reaching $74.13 per barrel. The euro also experienced a slight decline against the dollar.