Hong Kong shares rose 3%, leading gains in Asian markets even as key China data showed an uneven recovery.

Hong Kong’s Hang Seng jumped 3.19% on Friday, leading gains among major Asian indexes even as Chinese November economic data showed an uneven rebound.

Basic materials stocks led the rise, but the biggest gainer on the index was e-commerce company JD.com, which saw a nearly 10% jump.

Other names on the list of top gainers include property developer Longfor Group, Xinyi Solar Holdings, the world’s largest solar glass producer, and Haidilao chain.

The Chinese central bank announced that it had conducted a 50 billion yuan (US$7.06 billion) reverse repurchase operation as well as an injection of 1.45 trillion yuan of medium-term facility loans, in order to “maintain reasonable and sufficient liquidity in the banking system.”

The interest rate on medium-term facility loans remained at 2.5%, while the seven-day reverse repurchase rate remained at 1.8%.

Reuters reported that the Multilateral Fund’s loans worth 650 billion yuan are set to expire this month, meaning the process results in a net new money injection of 800 billion yuan into the banking system.

—Lim Hui Ji

Japan’s manufacturing activity contracted in December for the seventh straight month, according to a private survey.

The Jibun Bank’s preliminary manufacturing purchasing managers’ index (PMI) reading contracted to 47.7 in December from 48.3 in November, indicating the fastest deterioration in manufacturing business conditions in ten months.

A reading below 50 indicates contraction.

However, the Flash Services au Jibun Bank PMI stood at 52.0 in December versus 50.8 in November, the fastest rise in the three months.

The survey said services growth remained weaker than the average seen in 2023 as a whole. Total new business expanded at a slightly faster but moderate pace in December, despite a slight decline in new export sales.

– Shreyashi Sanyal

Australian private sector activity remained in contraction territory in December, but contracted at a weaker pace, according to preliminary estimates from Godot Bank.

The country’s composite PMI stood at 47.4, compared to a 27-month low of 46.2 in November.

Australia’s manufacturing PMI came in at 47.8, slightly higher than 47.7 the previous month, while the services PMI came in at 47.6, a slower rate of contraction compared to 46.0 in November.

The bank said demand conditions remained under pressure in December, but input cost inflation eased. Total employment also continued to grow and business optimism improved compared to November.

– Lim Hui Ji

Macroeconomic uncertainty and rising interest rates may have weighed on the performance of solar stocks this year – but one fund manager remains optimistic about the sector’s long-term prospects.

“We like solar so much because solar installations can be done anywhere — unlike wind plants. But it plays a role in interest rates right now, so if interest rates go down — which they are right now — solar companies can To do very well,” Stephen Glass, managing director and investment analyst at Australia-based Pella Funds, told CNBC Pro.

One stock stands out to him as a long-term play.

CNBC Pro subscribers can read more here.

– Amala Balakrishner

Goldman Sachs recently added a number of stocks to its top picks lists.

These lists, called the “Directors’ Edition Condemnation List,” include the United States, Europe and the Asia-Pacific region.

Here are four of the new additions.

CNBC Pro subscribers can read more here.

-Weezin Tan

Federal Reserve Chairman Jerome Powell’s dovish tone on Wednesday increases the likelihood of interest rate cuts sooner than some had expected, Deutsche Bank said, and improves the chances of a soft landing if inflation continues to decline.

“While our baseline remains that the first rate cut is likely to come in June 2024 and that the Fed will cut rates by 175 basis points next year, today’s meeting “Indicates cautious risks to this forecast.” Memo titled “FOMC December: Powell blows pot early at holiday party.”

“We see increasing risks of a possible rate cut as early as March,” Luzetti continued. “Early easing policy in the presence of a more significant contraction would improve the odds of a soft landing.”

In fact, the CME FedWatch tool shows that markets are currently pricing in a roughly 72% probability that the Fed will cut interest rates by 0.25 percentage points in March. That’s up from 65% on Wednesday.

– Sarah Maine, Michael Bloom

Big tech names lagged the market, entering negative territory amid broader market gains.

Shares of Microsoft and Netflix were down about 2.3% as of Thursday afternoon. Amazon and Alphabet shares fell by 1.1% and 0.9%, respectively. Shares of Apple and Meta Platforms also saw declines of 0.2% and 0.5%, respectively.

Meanwhile, the S&P 500 rose 0.2%, while the Nasdaq Composite rose 0.1%.

— Hakyung Kim

Oil prices settled 3% higher on Thursday due to a weaker dollar and a slight improvement in demand growth in 2024.

The West Texas Intermediate contract for January gained $2.11, or 3.04%, to settle at $71.58 per barrel, while the Brent contract for February rose $2.35, or 3.16%, to settle at $76.61 per barrel.

The US dollar also fell to a four-month low on Thursday after the Federal Reserve signaled an end to interest rate hikes. A weak dollar makes oil cheaper, which can raise demand.

The International Energy Agency said on Thursday that global oil demand will grow by 1.1 million barrels per day in 2024, a slight increase from its previous forecast of 930,000 barrels per day.

-Spencer Kimball

The benchmark interest rate fell below 4% for the first time since August, as traders bet on 2024 Fed rate cuts. The 10-year note last traded at 3.95%.