Asian stocks fall on weak economic signals, Hang Seng index declines By Investing.com

Investing.com — Most Asian stocks fell on Friday following weak economic signals from Japan and the euro zone, while the heavyweight index posted sharp losses. Chow Tai Fook Jewelry caused a decline in the Hang Seng Index in Hong Kong.

Trading volumes were weak, while markets also saw few signals overnight due to the US market holiday. Most regional stock exchanges are also expected to end the week unchanged as uncertainty increases in the markets regarding the path of US interest rates next year.

The index was the worst performer among its peers on Friday, down 1.5% on an 11% decline in shares of luxury goods retailer Chow Tai Fook Jewelery Group Ltd (HK:). The retailer, part of the Chow Tai Fook Group, posted strong profit growth in the six months to September 30.

But uncertainty over the group’s succession plans, coupled with concerns about slowing demand for luxury goods in China and Hong Kong, largely offset strong earnings. Shares of New World Development Real Estate Limited, which is also part of the group, fell 0.6 percent in Hong Kong trading.

Broader Chinese stocks also fell, with shares of major property developers seeing some profit-taking after a strong week. Expectations of more political support for the sector have spurred strong gains in real estate stocks, as Beijing prepares a whitelist for developers to provide them easier access to financing.

The Chinese index fell 0.5%, while the index fell 0.4%.

The focus is now squarely on data from China, due next week, for further signals on trading activity. However, Goldman Sachs recently said it was positive on the outlook for Chinese stocks through 2024, as the economic recovery grows stronger.

Weak business activity readings from the markets and negative signals given to them, especially since both regions also recorded negative GDP in the third quarter. US data for November was scheduled to be released later the same day.

But the Japanese index rose 0.6% in catch-up trading after the holiday on Thursday. Weaker-than-expected data for October also fueled expectations that the Bank of Japan will have more room to remain ultra-dovish for longer, even as core Japanese inflation remains steady.

Other Asian indices were mostly negative. Australia’s index rose 0.3%, while South Korea’s index fell 0.3%.

India index futures pointed to a slightly negative opening. But the Nifty index remained within sight of a record high, while a Reuters poll also showed that markets were largely bullish on Indian stocks over the next six months, with the resilience of the Indian economy set to push the Nifty index to new highs.