Asian Markets Were Varied Despite Optimistic Trading Sentiment

 

Asian markets were mixed on Friday, driven by the slump in Japan's stocks and the rally in China's stocks. Markets had an upbeat trading sentiment because of record highs in the US stock index, the S&P 500, and China's policy support for local stocks.

 

China's markets gained, with the mainland's Shanghai Composite index gaining 0.7% and Hong Kong’s Hang Seng index rallying 1.86%. The mainland's market sentiment improved as Beijing called on state-run financial institutions to bolster local equity markets. Trump's signal of a Sino-US trade deal elevated Hong Kong's market sentiment. A gain in chipmaking stocks also boosted the Heng Seng index.

 

China's key PMI data for January will be released on Monday. Afterwards, China's markets will be closed next week for the Chinese New Year holiday.

 

Conversely, the Nikkei 225 index lost 0.067%. Japanese shares reduced their gains following a rate hike by the Bank of Japan. Separately, the purchasing managers index released on Friday showed that Japan's manufacturing sector declined while its service sector growth surged. Mixed economic data also failed to enhance market sentiment.

 

South Korea’s KOSPI rose 0.85% on strength in chip stocks as optimism grew over a US $500 billion AI project.

 

As of 5:02 pm SGT, India's Nifty 50 index fell 0.24%. As of 4: 47 pm SGT, Singapore’s Straits Times Index dipped 0.02% after the central bank loosened monetary policy and forecast slower growth for 2025. FTSE Bursa Malaysia KLCI index dropped 0.36%.