Asian equities rise as additional economic indications from China and the US are forthcoming

Although most regional markets were resting on high gains for November, Asian equities climbed marginally on Tuesday as traders stayed in the sidelines ahead of a series of important economic readings from the U.S. and China that are coming later this week.

A surprise decline in retail sales in Australia has also raised expectations for a reduction in inflation, which may lead to a less aggressive approach from the Reserve Bank. In order to reduce price pressure, Governor Michele Bullock stated that the bank needed to be more cautious when hiking rates because Australian inflation was mostly following patterns elsewhere.

The KOSPI in South Korea increased 0.7% in November despite statistics indicating a further decline in consumer confidence. However, morale was steady above 2023 lows despite a recent uptick in the South Korean economy.

After a long weekend, the Nifty 50 index futures for India indicated a bullish opening.

In anticipation of further economic clues this week, U.S. indices finished slightly lower on Monday, giving regional markets a shaky head start from Wall Street. This Thursday is the deadline for the Federal Reserve's favoured inflation indicator, PCE prices, as well as the purchasing managers index readings for November. This week will also see a revised figure of the GDP for the third quarter.

With rising eagerness that the Fed will soon stop raising interest rates, markets were mostly keeping an eye out for any more indications of slowing U.S. economic growth. Despite Chinese equities underperforming their counterparts, this idea placed most Asian bourses on course for a positive performance in November.

This Thursday is the release date of the Chinese PMI data for November, which, following a fairly dismal October, could provide more insights into business activity in the largest economy in Asia. Monday's data also revealed that Chinese industrial earnings were continuing to decrease, albeit at a slower rate.

Through November, Chinese stock indices mostly lagged behind those of other Asian countries due to worries about a downturn in the Chinese economy and frustration with Beijing's continued stimulus. The SSEC was slightly higher while the CSI 300 was down 1.6% for the month—its fourth consecutive month in the negative.

(Sources: investing.com, reuters.com)