THE ETERNAL SOVEREIGN

Tag: Asia stocks

  • Rate uncertainty, Iran tensions drag on Asia stocks; South Korea bucks the trend.

    Most Asian equities declined on Friday as mounting uncertainty over the U.S. interest-rate outlook and escalating tensions surrounding Iran dampened appetite for risk assets.

    South Korea stood out as a bright spot, with the KOSPI surging to fresh record highs on sustained optimism in domestic markets following a recent tech-led rally.

    Regional bourses tracked overnight losses on Wall Street, where a wave of risk-off sentiment pressured stocks. S&P 500 Futures edged up 0.16% by 22:37 ET (03:37 GMT), as investors awaited key inflation and growth data due later in the session. Chinese markets remained shut for the Lunar New Year holiday.

    Japan slides despite mixed data; Hong Kong retreats after break

    In Japan, the Nikkei 225 and TOPIX were the region’s weakest performers, falling 1.4% and 1.2%, respectively.

    Shares came under pressure following mixed economic releases. Data showed Japan’s headline consumer price index slowed to its lowest level in nearly four years in January, while core inflation also eased but remained above the Bank of Japan’s 2% annual target.

    Meanwhile, purchasing managers’ index figures indicated factory activity expanded to a four-year high in February, supported by firm overseas demand.

    Hong Kong’s Hang Seng Index fell 0.6% as trading resumed after a three-day holiday, with local technology stocks mirroring earlier global declines.

    Among the laggards were Alibaba Group and Baidu Inc, which tumbled between 4% and 6% after being briefly named on a U.S. government list of firms allegedly linked to the Chinese military. BYD Co, also cited in the list, slipped 1.6%.

    Elsewhere, markets were subdued. Australia’s S&P/ASX 200 dipped 0.2%, Singapore’s Straits Times Index edged up 0.1%, and India’s Nifty 50 was little changed, with local tech shares remaining cautious despite reports of new artificial intelligence ventures.

    Risk sentiment remained fragile after U.S. President Donald Trump gave Iran a 10–15 day deadline to reach a nuclear agreement or face potential U.S. action, with multiple reports suggesting further strikes were under consideration.

    South Korea outperforms as KOSPI hits record

    South Korea’s KOSPI bucked the regional trend, climbing more than 1.6% to a record 5,768.61 points and marking its second straight session at an all-time high.

    While Thursday’s gains were driven by technology stocks, Friday’s advance was led by strong performances in brokerage, defense, and insurance names.

    Local media reported a surge in buying by retail investors, even as foreign investors continued to pare holdings.

    Separately, South Korea’s top court on Thursday sentenced former President Yoon Suk-Yeol to life imprisonment over charges linked to an attempted insurrection in late 2024.

    Sources: Ambar Warrick

  • Asian stocks rose on tech strength, with the Nikkei hitting a new high near 58,000 after Takaichi’s win.

    Asian equities climbed further on Tuesday, led by tech stocks, with Japan’s market hitting new records as investors embraced the “Takaichi trade” after PM Sanae Takaichi’s election win. Sentiment was supported by modest gains on Wall Street overnight, where the Nasdaq outperformed on a rebound in tech and AI shares, while U.S. futures were mostly flat in Asian trading.

    Nikkei jumps to a fresh record, closing in on 58,000 after Takaichi’s victory.

    Japan’s Nikkei 225 surged as much as 3% to a fresh record of 57,960, while the broader TOPIX advanced about 2.2% to an all-time high of 3,863.90. The gains followed a strong session on Monday, when the Nikkei rose nearly 4% and the TOPIX added 2.3%.

    The rally underscored growing investor confidence in Prime Minister Sanae Takaichi’s policy agenda, widely seen as supportive of economic growth, corporate earnings, and domestic investment. Her decisive election victory over the weekend has reinforced expectations of continued pro-business reforms, expansionary fiscal policy, and initiatives to boost capital spending, innovation, and strategic sectors.

    ING analysts said the landslide win strengthens the case for “responsible but expansionary” fiscal spending and a more Japan-centric foreign policy, adding that risk-on sentiment is likely to dominate markets in the near term.

    Asian tech stocks extend gains

    Technology shares across Asia extended recent gains after last week’s sharp global sell-off driven by AI and valuation concerns. South Korea’s KOSPI rose 0.5% after a more than 4% surge previously, while Hong Kong’s Hang Seng added 0.5%, led by a 1% gain in the tech subindex. Mainland Chinese benchmarks were flat, Australia’s ASX 200 edged up 0.2%, Singapore’s STI slipped 0.3%, and India’s Nifty 50 futures were little changed. Investors are also awaiting key U.S. jobs and inflation data later this week for signals on interest rates and global growth.

    Sources: Ayushman Ojha