Asia-Pacific Markets Mostly Rise as Wall Street Gains Overnight

February 2, 2025 – Asian markets mostly gained on Friday, following Wall Street’s overnight rise, as investors digested the latest earnings from Big Tech companies. Japanese stocks led the way, with both the Nikkei 225 and Topix indexes advancing for the third consecutive day.

Japan’s Market Performance: Nikkei 225 and Topix Rise

• Nikkei 225 rose by 0.15%, closing at 39,572.49.
• Topix index gained 0.24%, closing at 2,788.66.

Japan’s consumer price index (excluding fresh food) rose 2.5% year-on-year in January, slightly higher than the previous month’s rise of 2.4% and in line with Reuters estimates. Additionally, Japan’s unemployment rate for December fell to 2.4%, surpassing expectations of 2.5%. Meanwhile, retail sales for December climbed 3.7% year-on-year, and industrial output grew by 0.3% month-on-month, recovering from a 2.2% decline in November.

South Korea’s Kospi Retreats, Australia Hits All-Time High

• South Korea’s Kospi retreated 0.77%, ending the day at 2,517.37.
• The small-cap Kosdaq closed flat at 728.29 following a four-day break.

In Australia, the S&P/ASX 200 rose for the third straight day, closing at an all-time high of 8,532.30, a 0.45% gain. The Producer Price Index (PPI) for Australia rose 3.7% year-on-year in the December 2024 quarter, indicating strong inflationary pressure.

Indian Market Update: Pre-Budget Optimism Drives Gains

Indian stocks showed positive movement ahead of the country’s Union Budget on February 3, 2025. The Nifty 50 gained 1.18%, while the BSE Sensex advanced by 0.94% by 1:30 PM local time. Investors are closely watching for potential tax relief and infrastructure spending announcements in the upcoming Budget.

Hong Kong and Chinese markets remained closed for the Lunar New Year holiday.

U.S. Markets Overview: Strong Gains Despite Late Session Volatility

Overnight, U.S. markets ended in the green:

• Dow Jones Industrial Average climbed 168.61 points (0.38%) to close at 44,882.13.
• S&P 500 rose 0.53% to 6,071.17.
• Nasdaq Composite gained 0.25%, closing at 19,681.75.

However, stocks trimmed gains towards the end of the session after President Donald Trump announced intentions to implement 25% tariffs on U.S. imports from Canada and Mexico.

SK Hynix Shares Plunge Over 11% as South Korean Markets Resume

SK Hynix, a key supplier to Nvidia, saw its shares plummet by 11.8% after South Korea’s markets reopened following a four-day break. The chipmaker is under pressure as Chinese AI startup DeepSeek challenges the global leadership of the U.S. in artificial intelligence. Samsung Electronics also faced a decline, with shares dropping 2.61% after missing fourth-quarter profit estimates and reporting a sharp decline from the previous quarter.

Gold Futures Hit Fresh All-Time High

In commodities, gold futures hit a fresh all-time high as investors reacted to the latest U.S. GDP data, which showed slower-than-expected growth for the fourth quarter of 2024.

• Gold futures on the New York Mercantile Exchange traded at $2,852.5 per ounce.

Trevor Yates, senior investment analyst at Global X ETFs, noted that the slower-than-expected GDP growth could prompt the Federal Reserve to adopt a more dovish stance, allowing inflation to run hotter for longer and pushing real interest rates lower. Gold prices tend to have an inverse relationship with interest rates, benefiting from a lower rate environment.

Asian markets showed mostly positive movements on Friday, driven by Wall Street’s overnight gains and positive sentiment around global economic data. Japan’s economic indicators showed strong signs of resilience, while Australian stocks hit an all-time high. However, SK Hynix and Samsung Electronics faced setbacks, reflecting some weakness in the semiconductor sector. As the global markets continue to assess the economic landscape and earnings reports, investors will keep a close eye on developments ahead of key budget announcements in India and any further shifts in global monetary policies.