Asia Shares and Dollar Struggle as December Begins

Asian shares started December on a weak note after a recent rally, with MSCI's broadest index of Asia-Pacific shares outside Japan falling 0.4%. However, anticipated interest rate cuts in Europe and the United States are expected to ease pressure on local currencies and central banks. European markets are set to open higher, supported by expectations of early and aggressive rate cuts by the European Central Bank. Factory activity in Asia remained weak, with Japan's factory activity shrinking at the fastest pace in nine months. Mixed factory activity data for China also pointed to a feeble economic recovery. Inflation data from the US and Europe showed cooling, reinforcing expectations for rate cuts. The dollar index fell, while gold prices rose.