BY COMFORT OGBONNA
Global equities came under pressure on Tuesday, with Asian shares sliding sharply and U.S. futures pointing lower as investors braced for a series of critical U.S. employment and inflation reports that could shape the outlook for interest rates in the months ahead. Market sentiment was cautious as traders weighed slowing economic signals in parts of Asia against lingering concerns over inflation and central bank policy in major economies.
In Japan, stocks retreated as fresh data signaled a modest slowdown in manufacturing activity. Tokyo’s Nikkei 225 fell 1.2% to 49,544.21 after preliminary factory figures showed weaker momentum. The S&P Global Flash purchasing managers’ index improved slightly to 49.7 in November from 48.5 in October, but remained below the 50-point threshold that separates expansion from contraction, reinforcing concerns that growth remains fragile.
Investors are closely monitoring Japanese economic indicators ahead of the Bank of Japan’s policy meeting scheduled for Friday. Markets widely expect the central bank to raise interest rates, a move that could send ripples through global bond markets and add volatility to cryptocurrency trading, where prices have already been sensitive to shifts in monetary policy expectations.
Chinese equities also moved lower after a batch of November data disappointed expectations. Retail sales grew just 1.3% from a year earlier, marking the slowest pace since 2022 during the pandemic period. Weakness was also evident in lending and investment figures, highlighting ongoing challenges for the world’s second-largest economy as it struggles to regain momentum. Analysts noted that the data point to softer growth heading into year-end, with forecasts suggesting expansion may slow to around 4% in the final quarter.
Hong Kong’s Hang Seng index dropped 1.9% to 25,139.16, while mainland China’s Shanghai Composite slid 1.2% to 3,820.85. Elsewhere in the region, South Korea’s Kospi fell 1.5% to 4,027.83, Taiwan’s Taiex lost 1.1%, and Australia’s S&P/ASX 200 declined 0.6% to close at 8,583.00, reflecting a broad pullback across Asia-Pacific markets.
In corporate news, shares of iRobot, the maker of Roomba robotic vacuum cleaners, plunged 9.3% in after-hours trading after the company filed for Chapter 11 bankruptcy protection. The drop followed an already steep decline of nearly 73% on Monday. iRobot has struggled amid intensifying competition and shifting consumer demand, though the company said it does not expect disruptions to its products as it undergoes a restructuring process that will see it taken private.
U.S. markets also ended lower on Monday, setting a cautious tone ahead of the new trading day. The S&P 500 edged down 0.2% to 6,816.51, even as most of its components posted gains. The Dow Jones Industrial Average slipped 0.1% to 48,416.56, while the Nasdaq Composite fell 0.6% to 23,057.41, weighed down by weakness in major technology names.
Artificial intelligence-related stocks delivered mixed performances, continuing a volatile trend seen in recent weeks. Nvidia, often viewed as a bellwether for the AI sector, gained 0.7%. In contrast, Oracle slid another 2.7% following a steep selloff last week, its worst performance in more than seven years, while Broadcom dropped 5.6%. Investors have grown increasingly wary that massive spending on chips and data centers may not generate returns large enough to justify current valuations.
Looking ahead, Wall Street’s attention is firmly fixed on upcoming U.S. economic releases. Economists expect the November jobs report, due Tuesday, to show a net gain of about 40,000 jobs, suggesting continued cooling in the labor market. Inflation data scheduled for Thursday are forecast to show consumer prices rising 3.1% year-on-year in November.
Market participants are hoping for a delicate balance: a labor market that softens enough to encourage the Federal Reserve to consider interest rate cuts, but not so much that it pushes the economy toward recession. Lower interest rates tend to support economic growth and asset prices, though they also risk reigniting inflationary pressures. The unemployment rate is expected to hold at 4.4%, near its highest level since 2021.
In commodities trading, oil prices edged lower in early Tuesday dealings. U.S. benchmark crude slipped 32 cents to $56.50 per barrel, while Brent crude fell 33 cents to $60.23 per barrel. In currency markets, the U.S. dollar weakened slightly against the Japanese yen, trading at 154.81 yen compared with 155.21 yen previously, while the euro eased marginally to $1.1753.
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