Asian markets showed mixed results Monday as investors analyzed China’s manufacturing data and industrial profits, highlighting uncertainties in the region’s economic trajectory.
Japan’s Nikkei 225 declined 0.92%, closing at 39,565.8, while the Topix gained 0.26% to 2,758.07.
Japan’s chipmakers faced sell-offs after Chinese AI firm DeepSeek launched a free open-source large-language model, raising concerns about competition in the AI space.
Advantest fell 8.6%, Tokyo Electron dropped 4.9%, and Renesas Electronics slid 1.24%. SoftBank Group, a significant shareholder in chip designer Arm, tumbled 8.3%.
Hong Kong’s Hang Seng Index rose 0.51% late in the session, driven by optimism in select sectors, while mainland China’s CSI 300 slipped 0.41% to close at 3,817.08.
China’s official manufacturing PMI for January unexpectedly contracted, landing at 49.1, below Reuters’ estimate of 50.1.
While December industrial profits jumped 11% from the previous year, overall profits declined for the third consecutive year, reflecting the broader challenges businesses face in the current economic climate.
Markets in Australia, South Korea, and Taiwan remained closed for holidays, contributing to reduced trading activity across the region.
In an effort to revitalize its flagging stock market, China’s securities regulator announced new initiatives to promote the development of index investment products.
These include support for equity and bond ETFs, following recent directives urging state-owned funds and insurers to increase stock purchases.
The measures underscore the government’s ongoing commitment to stabilizing its financial markets, even as economic pressures persist.
U.S. markets retreated Friday, snapping a four-day rally as investors locked in gains. The S&P 500 declined 0.3% to close at 6,101.24 after hitting an intraday high.
The Nasdaq Composite fell 0.5%, and the Dow Jones Industrial Average dropped 0.3%, ending at 44,424.25.
Optimism surrounding pro-business policies helped buoy markets earlier in the week. Despite the dip, analysts highlighted the resilience of equities, pointing to the strong momentum that marked the first weeks of the year.
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