Asian Shares Decline On Growth Worries

(RTTNews) - Asian stocks fell on Friday as optimism about slower Fed rate hikes faded and recession worries took center stage.

Investors awaited key U.S. employment report for November due later in the day that is expected to show a sizable slowdown in hiring.

Investors also fretted about China's zero-COVID policy failure and its impact on the global economy.

China's Shanghai Composite index slipped 0.29 percent to 3,156.14 as cities across the country further unwound COVID-19 restrictions following mass protests against strict pandemic curbs. Hong Kong's Hang Seng index slid 0.33 percent to 18,675.35.

Japanese shares tumbled to hit a three-week low as the yen strengthened amid steep declines in U.S. and European benchmark yields.

The Nikkei average fell 1.59 percent to 27,777.90, marking its lowest close since Nov. 10, with technology stocks and automakers pacing the declines. The broader Topix index closed 1.64 percent lower at 1,953.98.

Honda Motor, Nissan and Mitsubishi Motors lost 2-6 percent. Social media and online ad firm CyberAgent jumped 4 percent and HUB surged 7 percent after Japan secured a historic 2-1 win over Spain in the Group E match of the FIFA World Cup 2022.

Seoul stocks fell sharply to snap a three-day losing streak as traders booked some profits after recent rallies. The Kospi average slumped 1.84 percent to 2,434.33. Tech heavyweights Samsung Electronics and SK Hynix lost 3-4 percent.

Australian markets ended notably lower, with fears of a slowing housing market and weak U.S. manufacturing data released overnight denting sentiment.

The benchmark S&P/ASX 200 dropped 0.72 percent to 7,301.50, dragged down by financials and energy stocks. The broader All Ordinaries index shed 0.67 percent to 7,503.50.

Gold miners outperformed after bullion prices jumped overnight on the back of a pullback in the dollar.

Across the Tasman, New Zealand's benchmark NZX-50 index slipped 0.11 percent to close at 11,641.85.

U.S. stocks ended mixed overnight as investors reacted to a mixed batch of economic data.

While U.S. manufacturing activity shrank for the first time in 2-1/2 years in November, consumers' incomes and expenditures increased in October and first-time unemployment benefits declined during Thanksgiving week, separate reports showed.

A measure of inflation that is closely monitored by the Federal Reserve eased but remained at an elevated level in October.

The Dow dipped 0.6 percent and the S&P 500 slipped marginally while the tech-heavy Nasdaq Composite edged up 0.1 percent.