Global Markets and Economy Update

Asia-Pacific markets were mixed on Monday as China's private PMI unexpectedly contracted, while U.S. rate-cut bets climbed. Hong Kong's Hang Seng Index rose 0.81%, and the mainland CSI 300 was up 1.1%. China's factory activity contraction was attributed to soft domestic demand. The People's Bank of China warned of illegal activities tied to digital currencies, causing Hong Kong-listed firms with exposure to digital assets to plunge. Japan's Nikkei 225 index fell 1.89%, while South Korea's Kosdaq outperformed and U.S. futures held steady.

China's factory activity unexpectedly contracted in November, according to a private survey released on Monday. The RatingDog China General Manufacturing PMI fell to 49.9, missing analysts' expectations of 50.5. The slowdown was attributed to soft domestic demand, despite a notable recovery in new export orders. The official manufacturing PMI also showed a contraction for the eighth month, coming in at 49.2. The economic data suggested China's growth is likely to decelerate further to below 4.5% in the fourth quarter. Economists pointed to the upcoming Politburo meeting and the Central Economic Work Conference for policymakers' signals on next year's economic priorities. A temporary trade truce with the U.S. may help reduce uncertainty, but a meaningful demand recovery is unlikely to come easily.

The stock market is poised to continue its winning streak as it heads into December, with stock futures little changed on Sunday night. The S&P 500 and Nasdaq Composite surged 3.7% and 4.9% respectively last week, while the Dow Jones Industrial Average advanced 3.2%. Historically, December is a strong month for the S&P 500, averaging an advance of over 1%. Despite a turbulent November, market analysts remain optimistic about the prospects for a positive December, citing improved market breadth and the growing likelihood of a December rate cut.

The Economist's finance and economics section discusses various global economic issues, including America's jobs market, the impact of self-driving cars on urban economies, China's property market woes, and India's labor force reforms. Other topics include the affordability crisis, shorting bubbly firms, AI adoption, investor fatalism, visa restrictions, minimum wages, and China's economic goals. The articles analyze the potential consequences of these issues and offer insights into the global economy.

The article discusses the growing concern among investors that the private markets and unlisted tech industry could be on the verge of a collapse similar to the 2008 financial crisis. It highlights the challenges of short-selling in these markets and the potential risks involved. The article references the film 'The Big Short' and the experiences of investors who short-sold American housing debt before the Lehman Brothers collapse.

The article discusses the evolving music industry in 2026, highlighting the rise of AI-generated music, the continued popularity of K-pop, and the emergence of new genres like 'dark country'. It notes that AI-generated music is becoming increasingly prevalent, with artists like The Velvet Sundown releasing multiple albums in quick succession, generating significant revenue despite being non-existent. The article also touches on other cultural trends in 2026, including cinematic remakes and the inclusion of podcasting in the Golden Globes.