Asia markets mostly fall as investors assess China's stimulus pledges; South Korea stocks climb

This is CNBC's live blog covering Asia-Pacific markets.

China stocks led losses in Asia Friday after Beijing affirmed its recent policy shifts and stressed on plans to boost growth following a high-profile meeting Thursday.

Hong Kong's Hang Seng index fell 1.39%, while mainland China's CSI 300 was down 0.94%.

Most other Asia-Pacific markets also fell, tracking Wall Street declines following a hotter-than-expected producer price inflation reading.

The outlier was South Korea's Kospi, which gained 0.23%, while the small-cap Kosdaq rose 1.01%. Internet firm Kakao gained over 5%, with many of its subsidiaries seeing huge gains.

Shares of Samsung Biologics, the fourth-largest company in the Kospi by market cap, rose 3.6%.

Japan's benchmark Nikkei 225 fell 1.16%, while the broad-based Topix saw a smaller loss of 1.12%.

Investors also assessed the Bank of Japan's Tankan survey, which showed a higher-than-expected optimism among large Japanese manufacturers.

The Tankan index for large manufacturing firms climbed to 14 in the quarter ended December, up from 13 in the September quarter and beating the 12 expected from economists polled by Reuters.

The index tracks business sentiment in the country among large companies and contributes to the BOJ's considerations when forming monetary policy. A higher figure means that optimists outnumber pessimists, and vice versa.

Australia's S&P/ASX 200 fell 0.69%.

India will also release its wholesale inflation figures for November later in the day. Economists polled by Reuters expect India's wholesale inflation rate to come down to 2.2% from October's 2.36%. The country's consumer inflation dropped from a 14-month high, according to data released Thursday.

Overnight in the U.S., all three major indexes slid, with the Dow Jones Industrial Average losing 0.53% to mark its sixth straight losing day after a hotter-than-expected inflation reading.

The producer price index, which measures wholesale inflation, climbed 0.4% for November, higher than the Dow Jones estimate of 0.2%. On an annual basis, PPI advanced 3%, its biggest rise since the 12 months ended February 2023.

The tech-heavy Nasdaq retreated from the 20,000 mark and shed 0.66%, while the broad market S&P 500 shed 0.54% .

— CNBC's Sean Conlon and Hakyung Kim contributed to this report.

Yen weakens for fifth day amid possible hold on rate increases

The Japanese yen weakened for a fifth straight day as Reuters reported that the Bank of Japan was "leaning" to hold rates during its meeting next week.

The yen weakened 0.22% against the U.S. dollar to trade at 152.96, its lowest level since Nov. 27.

There is a 77.1% chance that the BOJ will hold rates when it meets next week, with a 22.9% chance of a 25-basis-point hike, according to LSEG data.

— Lim Hui Jie

BOJ leaning toward keeping rates steady next week, Reuters reports

The Bank of Japan is leaning toward keeping interest rates steady next week as policymakers prefer to spend more time scrutinising overseas risks and clues on next year's wage outlook, said five sources familiar with its thinking.

Any such decision will heighten the chance of an interest rate hike at the central bank's subsequent meeting in January or March, when there will be more information on the extent to which wage hikes will broaden next year.

There is no consensus within the central bank on the final decision, with some in the board still believing Japan has met the conditions for raising rates in December, the sources said. The decision will depend on the conviction each board member holds on the likelihood of Japan achieving sustained, wage-driven price rises.

Read the full story here.

— Reuters

Business sentiment in Japan strengthens more than expected in November

Business sentiment among large Japanese manufacturers was stronger than expected in the quarter ended December, according to the Bank of Japan's quarterly tankan survey.

The Tankan index for large manufacturing firms climbed to 14 in the quarter ended December, up from 13 in the September quarter and beating the 12 expected by economists polled by Reuters.

The index for large non-manufacturers held steady at 33, down from 34 in the September quarter but beating the 32 expected by the Reuters poll.

A higher figure means that optimists outnumber pessimists, and vice versa.

— Lim Hui Jie

CNBC Pro: Want to cash in on the emerging market boom? Here are 2 of HSBC's 'best stock ideas' with over 50% upside potential

A pick-up in consumer demand, improving economic growth and attractive stock market valuations have contributed to the popularity of emerging markets (EM) this year.

HSBC is sticking to its "cautiously constructive" stance on them in 2025, as U.S. President-elect Donald Trump prepares to return to office in January.

"There is no sugar coating that tariffs and a strong USD are downside risks," the investment bank's analysts said, as they revealed their best stock ideas.

Among their picks were two lesser-known names, both with over 50% upside potential.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

'Magnificent 7' isn't going to 'quietly end the year,' Chris Verrone says

The "Magnificent Seven" may be due for more big moves heading into 2025, according to Strategas Research Partners head of technical analysis Chris Verrone.

"The Mag 7 is not going quietly to end the year," he wrote in a Thursday note. "The most important thing on our screens the last few weeks has been the return of mega-cap leadership after a lengthy rest."

Verrone noted that Amazon, Meta Platforms, Apple, Alphabet and Tesla all hit fresh highs in the previous session. Those stocks have seen year-to-date gains of more than 50%, more than 78%, nearly 29%, more than 37% and more than 69%, respectively.

During Thursday's trading day, the CNBC Magnificent Seven index hit a new 52-week high.

— Sean Conlon

S&P 500 on track for seventh strongest year in history, according to Canaccord Genuity Capital Markets

The S&P 500 has risen around 27% this year, hovering around its all-time highs. This puts the index on pace to notch its seventh strongest year on record, Canaccord Genuity Capital Markets wrote in a Thursday note.

Last year, the benchmark cinched a 24% rise.

"Back-to-back gains of 20% or more, although rare, have historically led to further upside," analyst Michael Welch said. "The mid-90s was the only other period when the SPX had back-to-back >20% gains."

He added: "The current environment continues to track the prior non-recessionary periods, with the S&P 500, Nasdaq Comp., and Russell 2000 all having gains across one, two, and three-month time periods."

— Lisa Kailai Han

Jeremy Siegel doesn't think the stock market in 2025 will beat the rally from the past two years

Next year's outlook seems tepid in comparison to previous years, according to Jeremy Siegel, WisdomTree senior economist and finance professor at the University of Pennsylvania's Wharton School.

"I don't think 2025, as good as everyone hopes the economy will be, given valuations, is going to be as good as 2023, 2024," Siegel told CNBC's "Squawk on the Street" on Thursday. "We'll probably see 0-10, 5-10 [percent gains.]"

Siegel added that there may be rotation in the market next year, noting that the recent surge of "Mag 7" tech stocks has been nearly unprecedented. "I don't know if it's just portfolio catch-up … some of that enthusiasm for some of those stocks very well might unwind next year," he said.

— Pia Singh