GLOBAL MARKETS: Stocks slip ahead of central bank decisions, key data

Asian stocks slid in early trading on Monday as investors scaled back risk at the start of a week packed with major central bank decisions and key economic data releases.

MSCI’s broad index of Asia-Pacific shares outside Japan fell 1%, led by losses of as much as 2.7% in South Korean stocks, one of the world’s best-performing markets this year. Chris Weston, head of research at Pepperstone Group in Melbourne, said markets were entering the final full trading week of 2025 as many investors prepared to close their books for the year.

“We roll into the final week of trading before many square off their books and call it a year,” Weston said, adding that liquidity is likely to thin as the holidays approach. He noted that while trading conditions should remain manageable this week, liquidity could drop sharply in the following days.

U.S. stock futures pointed higher, with S&P 500 e-mini futures up 0.3%. The yield on the benchmark 10-year U.S. Treasury note slipped 1.2 basis points to 4.182% as investors awaited a series of economic reports and interest rate decisions. Among central banks meeting this week, the Bank of Japan is widely expected to raise rates by 25 basis points to 0.75%, while the Bank of England could cut rates by a similar amount to 3.75%. The European Central Bank is expected to hold rates steady, along with Sweden’s Riksbank and Norway’s Norges Bank.

Investors are also bracing for the release of delayed U.S. economic data following the government shutdown, including the November jobs report and the monthly consumer price index.

In currency markets, the U.S. dollar held near its strongest level in more than a year against the offshore Chinese yuan, trading at 7.0532, after data showed further slowing in China’s factory output and retail sales in November. Separate official figures released Monday showed that new home prices continued to fall, signaling that a recovery in housing demand remains elusive despite government efforts to stabilize the sector.

China Vanke said it would hold a second bondholder meeting after failing to secure approval to extend by one year a bond payment due on Monday, raising the risk of default and reviving concerns about China’s troubled property sector. Jeff Zhang, an equity analyst at Morningstar, warned that a default by Vanke could have far-reaching consequences.

“If Vanke ultimately defaults, we think the ramifications for the China property sector could be significant,” Zhang said, adding that investors may grow more cautious even toward developers previously seen as relatively safe.

Japanese stocks also declined, despite some early support from the Bank of Japan’s closely watched “tankan” survey, which showed big manufacturers’ business sentiment at a four-year high. The Nikkei 225 was last down 1.4%.

In commodities, Brent crude rose 0.6% to $61.46 a barrel, supported by supply concerns linked to U.S.-Venezuela tensions and other geopolitical risks. Imperial Oil said it issued a fire alert at its 120,000-barrel-per-day refinery in Ontario, Canada, while Russia reported that an oil refinery in Afipsky was not damaged by a Ukrainian drone attack.

Gold extended its rally for a fifth straight session, approaching a record high. Spot gold rose 0.5% to $4,325.51 an ounce, not far from its recent peak of $4,381.21. Cryptocurrency markets rebounded after three days of losses, with bitcoin up 1.2% at $89,517.01 and ether gaining 1.1% to $3,116.42. -Reporting by Gregor Stuart HunterEditing by Shri Navaratnam and Sam Holmes/Reuters