Asian markets faced a downturn on Friday following the MSCI All Country World Index's robust performance in November, marking its third-largest monthly gain in the past decade. Concurrently, the dollar experienced a marginal decline.

Chinese stocks initiated a decline, contributing to a year-low for a benchmark of mainland shares. Australia and South Korea also witnessed a dip in equities, impacting the overall Asian shares index. On the contrary, Japanese benchmarks showed positive movements. In the U.S., futures indicated a slight decrease after the S&P 500 recorded a 0.4% increase on Thursday, culminating in nearly a 9% surge for the month, ranking among its best Novembers on record. The all-country index achieved its most significant monthly gain since 2020.

The U.S. dollar weakened against major peers, prompted by a decrease in a measure of inflation. This spurred speculations about a potential conclusion to the Federal Reserve tightening cycle, aligning with the narrative that fueled the surge in U.S. and global stocks last month. Attention now turns to Chair Jerome Powell's statements later on Friday for additional insights. The Bloomberg Dollar Spot Index experienced a decline on Friday after two consecutive sessions of gains.

Analysts, including Selena Ling from OCBC, noted, "Data prints seem to highlight that the US economy may be slowing down," leading to expectations of the Fed concluding its tightening cycle and potentially cutting rates in the second quarter.

Despite the surprise November rally, with the S&P 500 exceeding mid-October projections, analysts remain optimistic about potential gains in December.

Additional notable developments include China's Caixin manufacturing PMI beating estimates, suggesting an expansion in activity, and Korean exports surpassing expectations in November, offering positive signals for global trade.

In a noteworthy move, Alibaba Group Holding Ltd. received a downgrade from Wall Street on the same day it lost its status as China’s most valuable e-commerce firm to a rival. Meanwhile, Seven & i Holdings Co. in Japan experienced a significant rise after announcing plans for a share buyback and a stock split.

Other financial indicators show treasuries maintaining stability after a Thursday decline, while gold aims for a third consecutive weekly gain. Crude prices fell despite the OPEC+ agreement on a supply cutback, indicating skepticism among traders.

Key events on the horizon include Eurozone S&P Global Manufacturing PMI and U.S. construction spending and ISM Manufacturing data on Friday. Fed Chair Jerome Powell will participate in a "fireside chat" in Atlanta, while Chicago Fed President Austan Goolsbee is scheduled to speak.

Some of the main moves in markets:

Stocks:

• S&P 500 futures were little changed as of 12:30 p.m. Tokyo time
• Nikkei 225 futures (OSE) were little changed
• Japan’s Topix rose 0.4%
• Australia’s S&P/ASX 200 fell 0.3%
• Hong Kong’s Hang Seng fell 0.4%
• The Shanghai Composite fell 0.3%
• Euro Stoxx 50 futures rose 0.5%
• Nasdaq 100 futures fell 0.2%

Currencies:

• The Bloomberg Dollar Spot Index was little changed
• The euro rose 0.2% to $1.0906
• The Japanese yen rose 0.1% to 148.01 per dollar
• The offshore yuan was little changed at 7.1431 per dollar
• The Australian dollar was little changed at $0.6610

Cryptocurrencies:

• Bitcoin rose 0.7% to $38,006.18
• Ether rose 2.2% to $2,090.46

Bonds:

• The yield on 10-year Treasuries was little changed at 4.33%
• Japan’s 10-year yield advanced four basis points to 0.700%
• Australia’s 10-year yield advanced eight basis points to 4.49%

Commodities:

• West Texas Intermediate crude fell 0.3% to $75.71 a barrel
• Spot gold rose 0.2% to $2,041.26 an ounce