Asian Markets Were Mixed Amid Investor Enthusiasm

 

Asian markets saw a varied performance on Thursday (Jan. 23) even if market sentiment was high because of the upcoming monetary decision by the Bank of Japan and the policies released by China's government to support the mainland market.

 

Japan's market gained, with the Nikkei 225 index climbing 0.79%. Investors widely expected the BOJ to implement a 25 basis point rate hike on Friday because Japan's inflation and private spending showed resilience. BofA analysts stated that the market has already priced in this hike, with limited expectations for further increases before mid-2025. Japan's inflation and purchasing managers index data are also due this Friday.

 

China's markets were mixed after the government pledged increased financial support for the mainland's market. The mainland's Shanghai Composite index advanced 0.51%. However, Hong Kong’s Hang Seng index dropped 0.40%. Beijing announced plans to guide major state insurers and insurance funds to raise investments in the Mainland's market, signaling stronger governmental aid. These measures are regarded as ways to offset pressures from the threat of a 10% tariff increase by the US.

 

Elsewhere, South Korea’s KOSPI was the weakest performer in Asia, losing 1.24%. Weaker-than-expected GDP data of the fourth quarter dampened sentiment. The index was further depressed by profit-taking in the heavyweight stock, SK Hynix (KS: 000660), which reported record fourth-quarter earnings today. As a result, investors sold its shares to take profits.

 

As of 3:58 pm SGT, Singapore’s Straits Times index rose 0.67%. Conversely, the FTSE Bursa Malaysia KLCI index dropped 0.74%.

 

As of 4:13 pm SGT, India’s Nifty 50 index rose 0.41% following a flat open, ending a seven-month low.