Asian stocks traded mostly lower despite a Wall Street rally, reflecting tepid risk sentiment on Friday.

China's Caixin Manufacturing PMI expanded to 50.7 in November, but sluggish factory activity in other Asian regions dampened market enthusiasm.

 US S&P 500 futures remained muted as investors assessed expectations of a Federal Reserve interest rate cut.

The US Core PCE Price index rose at an annual pace of 3.0% in October, cooling off from the previous 3.4% readings.

New York Fed Bank President John Williams suggested that the peak level of the federal funds rate may be near.

Dovish Fed expectations strengthened with falling inflation in the US and supportive commentary from Fed officials.

The US Dollar and Treasury bond yields returned to the red zone, reversing the previous rebound.

Markets indicated a 48% chance of a rate cut in March next year, compared to a 22% chance the previous week.

The US Dollar Index consolidated near 103.30, while 10-year US Treasury bond yields hovered around 4.33%.

Fed Chair Jerome Powell's upcoming speeches will be closely watched for hints on the bank's path forward on interest rates.

Major currencies are supported by renewed US Dollar weakness, with the Euro being the strongest.

GBP/USD is rebounding amid hawkish Bank of England commentary, while Antipodeans show limited inspiration despite strong Chinese data and a weaker US Dollar.