Asian Markets Mixed on China's Upbeat Economic Data and Japan's Uncertain Rate Decisions

 

Asian markets presented a mixed picture on Friday (Jan. 17), as Chinese stocks advanced on economic data meeting expectations while Japanese equities lost amid rising expectations for an incoming interest rate hike. Next Monday's inauguration of President-elect Donald Trump curbed the regional sentiment.

 

China's markets led the gains as positive economic data lifted investor sentiment. The mainland's Shanghai Composite index added 0.18%. Hong Kong’s Hang Seng index edged up 0.31%. China’s economy expanded by 5% in 2024, meeting Beijing’s annual growth target. December’s industrial production and retail sales data also exceeded forecasts, supported by recent stimulus measures.

 

In contrast, Japan's market dipped, with the Nikkei 225 index closing down 0.31%. Investors grew cautious ahead of the Bank of Japan’s policy meeting next week. Investors anticipated that the BOJ would give a rate hike. BOJ Governor Kazuo Ueda said on Wednesday that Japan could only raise the rate if economic conditions constantly boosted. Moreover, the index was dragged down by the 4.26% slump in the share of Japan's gaming giant Nintendo Co Ltd (TYO: 7974) since its Switch 2 failed to excite investors.

 

Elsewhere, South Korea’s KOSPI eased 0.16% after the Bank of Korea unexpectedly held rates steady at 3.00%, despite market expectations of a 0.25% cut. As of 4:41 pm SGT, Singapore’s Straits Times Index gained 0.18%; FTSE Bursa Malaysia KLCI index advanced 0.84%. As of 4:56 pm SGT, India’s Nifty 50 index fell 0.42%.