Markets in the Asia-Pacific region mostly advanced on Friday, tracking gains from Wall Street overnight as investors reacted to Big Tech earnings and economic developments, CNBC reports.
Japan and Australia led the gains, while South Korea saw a downturn. Chinese and Hong Kong markets remained closed for the Lunar New Year holiday.
Japan’s benchmark indices continued their upward momentum. The Nikkei 225 rose by 0.15% to close at 39,572.49, while the broader Topix index added 0.24% to end at 2,788.66. This marks the third consecutive day of gains for both indices.
Economic data from Japan painted a mixed picture. The Tokyo Consumer Price Index (excluding fresh food) increased by 2.5% year-on-year in January, meeting analysts’ expectations and slightly exceeding December’s 2.4%. Meanwhile, Japan’s unemployment rate fell to 2.4% in December, missing forecasts of 2.5%. Retail sales for December surged by 3.7% from the previous year, while industrial output grew by 0.3% month-on-month, recovering from a 2.2% drop in November.
In South Korea, the Kospi index fell by 0.77% to close at 2,517.37, while the smaller Kosdaq ended flat at 728.29. This decline came after a four-day market break.
Shares of major chipmaker SK Hynix plunged by 11.8%, putting pressure on the broader market. The slump follows concerns over competition from Chinese AI startup DeepSeek, which poses a challenge to the dominance of US chipmakers.
Australia’s S&P/ASX 200 climbed 0.45% to close at an all-time high of 8,532.30, marking its third consecutive day of gains. Economic data showed a 3.7% annual increase in the country’s producer price index for the December 2024 quarter, the lowest reading in three years.
Indian markets were trading higher in anticipation of the country’s Union Budget announcement. The Nifty 50 index rose by 1.18%, while the BSE Sensex advanced 0.94% as of the early afternoon.
The positive sentiment in Asia followed gains on Wall Street, where all three major indices rose. The Dow Jones Industrial Average added 168.61 points (0.38%) to close at 44,882.13, while the S&P 500 gained 0.53% to end at 6,071.17. The Nasdaq Composite rose by 0.25%, finishing at 19,681.75.
Stocks trimmed gains late in the session after US President Donald Trump announced plans to impose 25% tariffs on imports from Canada and Mexico. The announcement led to a brief dip in major indices before they recovered.
