Asian markets started the week on a mixed note, with investors digesting fresh economic data from Japan and Thailand while bracing for key central bank decisions.
Tencent surged to its highest level since 2021, fueling optimism in China’s tech sector.
Japan’s Growth Surpasses Forecasts
Japan’s Nikkei 225 wobbled around the flatline before closing at 39,174.25, while the Topix inched up 0.28% to 2,766.9.
Investors welcomed stronger-than-expected GDP data, with the economy expanding at an annualized 2.8% in the fourth quarter, outpacing Reuters’ 1% estimate.
The yen strengthened to 151.5 against the dollar following the release.
South Korea’s Kospi climbed 0.75% to 2,610.42, with the Kosdaq advancing 1.61% to 768.48. Australia’s S&P/ASX 200 slipped 0.22% to 8,537.1, lagging behind its regional peers.
Tencent Rallies as Tech Confidence Builds
China’s tech giant Tencent saw its stock jump 4.25%, reaching a level unseen since July 2021, as data from LSEG highlighted investor enthusiasm over Weixin’s beta test of Deepseek integration.
The rally offered a rare bright spot in Hong Kong, where the Hang Seng Index fell 0.15% and the Hang Seng Tech Index slid 0.38%.
Mainland China’s CSI 300, which tracks the top 300 stocks listed in Shanghai and Shenzhen, eked out a 0.21% gain to close at 3,947.40.
Thailand’s Growth Disappoints, Central Banks in Focus
Thailand’s economy expanded 3.2% year-on-year in the fourth quarter, falling short of the expected 3.9% growth, according to LSEG data.
The full-year GDP increase of 2.5% added to concerns about the region’s economic momentum.
All eyes are on central banks this week. The Reserve Bank of Australia kicked off its two-day policy meeting, with an interest rate decision expected Tuesday.
Indonesia and New Zealand will follow with their own announcements Wednesday, setting the stage for potential market shifts.
Wall Street’s Mixed Finish
U.S. stocks wrapped up last week with a mixed performance. The Dow Jones Industrial Average fell 165.35 points, or 0.37%, to close at 44,546.08, while the S&P 500 dipped 0.01% to 6,114.63.
The Nasdaq Composite bucked the trend, gaining 0.41% to reach 20,026.77.
Despite Friday’s sluggish session, Wall Street logged weekly gains, fueled by investor relief over tariff policies and inflation data that was less alarming than anticipated.
Even a sharper-than-expected 0.9% drop in January retail sales failed to dampen sentiment, with traders brushing off the setback as a temporary blip.
Analysts noted that business confidence remains strong despite the short-term economic uncertainty.
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