Asia markets began the holiday-shortened week on a mixed note, as investors eagerly awaited policy decisions from key central banks. The Reserve Bank of Australia and the Reserve Bank of India were expected to provide updates on Tuesday and Thursday, respectively. Additionally, private surveys on service sector activity were scheduled to be released from China and Hong Kong on Monday.
Australia’s S&P/ASX 200 started the day on a negative note, dropping 1.05% after reaching an all-time high on Friday. On the other hand, Japan’s Nikkei 225 climbed 0.66%, and the broader Topix rose 0.51%. South Korea’s Kospi, however, experienced a decline of 1.06%, while the small-cap Kosdaq fell 0.8%. Meanwhile, Hong Kong’s Hang Seng index was also anticipated to fall.
As the Lunar New Year approached, several Asian countries, including China, Taiwan, South Korea, Singapore, and Hong Kong, prepared for shortened trading weeks.
In the United States, the S&P 500 achieved a fresh record high on Friday. Positive quarterly results from tech giants such as Meta (formerly known as Facebook) exceeded expectations, contributing to the upward momentum. Furthermore, the January jobs report surpassed expectations, further fueling market optimism.
The S&P 500 added 1.1% to close at 4,958.61, surpassing its previous record close of 4,927.93 set only a few days earlier. The Dow Jones Industrial Average also reached a new record close of 38,654.42, reflecting a 0.4% increase. Additionally, the Nasdaq Composite experienced substantial gains of 1.7%.
On Monday, investors looked forward to the release of retail sales figures for December from Singapore, along with inflation numbers for January from Thailand. These data points were expected to provide further insights into the performance of these economies and potentially impact market sentiment.
Market participants in Asia entered the week with a mixed outlook as they awaited key central bank decisions and economic data releases. While some markets experienced declines, others managed to maintain positive momentum. The influence of the strong performance in the U.S. market also played a role in shaping investor sentiment.
As the Lunar New Year approached, traders were prepared for shortened trading weeks in several Asian countries. These holidays added an additional layer of uncertainty to market dynamics.
Looking ahead, investors would closely monitor the central bank policy decisions and economic indicators for further insights into the direction of the Asian markets.
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