U.S. stock futures slipped early Monday while Asian markets delivered a mixed performance

BY COMFORT OGBONNA

U.S. stock futures slipped early Monday while Asian markets delivered a mixed performance, with Tokyo’s benchmark index suffering a sharp decline after fresh data pointed to weakening factory activity across the region. Oil prices, meanwhile, surged more than $1 a barrel, adding another layer of uncertainty to global markets.

In Japan, the Nikkei 225 tumbled 1.9% to 49,303.28 following government figures showing softer-than-expected corporate investment. Investors were already on alert as regional manufacturing data continues to reflect the strain of higher U.S. tariffs imposed under President Donald Trump, raising concerns about broader economic fallout.

A new survey of Japanese factory managers showed that manufacturing activity slowed again in November. The S&P Global Japan Manufacturing PMI rose slightly to 48.7 from 48.2 in October, but remained in contraction territory for the fifth consecutive month. According to S&P Global Market Intelligence, demand conditions remained weak and new business orders continued to decline, underscoring persistent pressure on the sector.

China also faced discouraging news, with official data revealing that factory activity contracted for the eighth month in a row. The prolonged downturn highlights the ongoing challenges facing the world’s second-largest economy, even with efforts to stabilize trade relations with the U.S.

Despite the regional weakness, Hong Kong’s Hang Seng index managed a modest gain of 0.4% to 25,973.07. Shares of food-delivery giant Meituan slipped 2.8% after reporting a quarterly net loss, which the company attributed to fierce competition in the sector that forced prices lower despite rising revenues.

Other major Asian markets delivered varied performances. The Shanghai Composite rose 0.7% to 3,914.01, while South Korea’s Kospi edged down 0.2% to 3,920.37. Australia’s S&P/ASX 200 fell 0.6% to 8,565.20. In Taiwan, the Taiex dropped 1%, and India’s Sensex dipped 0.1%.

Economists noted that although November PMI data across Asia reflected weak factory activity, the region’s exports have shown signs of recovery in recent months — a hopeful signal amid otherwise sluggish indicators.

Consumer activity in the United States is expected to remain strong, with Black Friday and Cyber Monday spending projected to exceed expectations. This resilience comes despite ongoing worries about the U.S. economic outlook.

Early Monday, futures tied to the S&P 500 were down 0.7%, while Dow Jones Industrial Average futures slipped 0.6%. Markets were recovering from a disruptive technical halt on Friday, when trading on the Dow, S&P 500, and Nasdaq was paused for hours due to an issue linked to a data center outage at CME’s service provider.

During Friday’s abbreviated post-Thanksgiving session, stocks edged higher — the S&P 500 gained 0.5%, the Dow added 0.6%, and the Nasdaq climbed 0.7%. The gains came after a tumultuous mid-November, when concerns about the sustainability of the artificial intelligence boom weighed on markets. Some major tech stocks recorded steep monthly declines: Nvidia fell 1.8% on Friday and finished the month with a sizable loss, while Oracle plunged 23% and Palantir dropped 16%.

Others, however, enjoyed strong November gains. Alphabet surged nearly 14%, driven by enthusiasm around its newly released Gemini AI model.

Investors are also closely watching the Federal Reserve as it grapples with rising inflation and slowing job growth. The central bank has already delivered two rate cuts this year in an effort to bolster the weakening labor market, but policymakers now face tough choices. More rate cuts could help support economic activity, yet they risk exacerbating inflationary pressures. Minutes from the Fed’s October meeting showed deep divisions among board members about the best path forward.

Retail stocks were also in focus as investors monitored early holiday shopping trends. Macy’s dipped 0.3%, while Kohl’s rose 1.4%. Dick’s Sporting Goods slipped 0.5%. Among specialty retailers, Abercrombie & Fitch climbed 2.9% and American Eagle Outfitters added 0.7%.

In commodity trading early Monday, U.S. benchmark crude jumped $1.19 to $59.74 per barrel. Brent crude advanced $1.15 to $63.53 per barrel. Currency markets saw the dollar weaken to 155.39 yen from 156.14 yen, while the euro ticked up to $1.16109. Bitcoin dropped 4.7% to $86,800 as volatility persisted across crypto markets.