Asian stock markets experienced a largely positive session on Friday, influenced by strong performances from major U.S. tech companies. This positive sentiment followed robust profit reports that encouraged investor confidence. In the U.S., futures and oil prices also saw an increase, indicating a favorable trading day ahead.
Market Performance Overview
Japan’s core inflation rate rose to 2.5% in January, surpassing the central bank’s target of 2%. This increase may lead to further interest rate hikes in the future. Additionally, Japan’s unemployment rate for December improved slightly, decreasing to 2.4% from 2.5% the previous month.
The Nikkei 225 index in Tokyo saw a modest rise of 0.1%, closing at 39,540.37. In contrast, South Korea’s Kospi index dropped by 1.4% to 2,501.83, influenced by concerns regarding the Chinese startup DeepSeek, which has raised alarms in the AI sector. Shares of SK Hynix, a key supplier to Nvidia, fell by 9.9%, while Samsung’s stock decreased by 2.4%.
- Australia’s S&P/ASX 200 index increased by 0.3% to 8,516.90.
- The SET index in Bangkok rose by 0.1%.
- Markets in Hong Kong and Shanghai were closed for lunar new year celebrations.
U.S. Market Highlights
On Thursday, the S&P 500 index rose by 0.5% to 6,071.17, with four out of five stocks in the index gaining. The Dow Jones Industrial Average added 0.4%, closing at 44,882.13, while the Nasdaq composite gained 0.3% to reach 19,681.75. Meta Platforms significantly contributed to these gains, with its stock rising by 1.6% after reporting better-than-expected profits for the end of 2024.
The company reaffirmed its commitment to artificial intelligence, which helped ease some market concerns stemming from DeepSeek’s recent announcements. DeepSeek’s claims of developing a large language model that can compete with top-tier models without high-end chips have sparked discussions about the future of AI investments.
- Concerns about the necessity of substantial investments in AI chips, data centers, and energy resources have emerged.
- The ongoing AI boom has been a major driver of the U.S. stock market’s record highs.
- Emerging competitors like DeepSeek have put pressure on established players, particularly Nvidia.
Microsoft’s Performance and Economic Outlook
Despite the overall positive market sentiment, Microsoft experienced a notable decline, with its shares falling by 6.2%. Although the software giant exceeded analysts’ profit expectations for the latest quarter, concerns about slower-than-expected growth in its cloud computing segment overshadowed the positive earnings report.
This cloud business is crucial to Microsoft’s AI strategy, and CEO Satya Nadella acknowledged the impact of DeepSeek’s innovations on the industry. He suggested that efficiency gains and lower costs in AI development could lead to increased consumption and a surge in new applications.
Energy and Currency Markets
In energy trading, benchmark U.S. crude oil prices increased by 55 cents, reaching $73.28 per barrel, while Brent crude, the international standard, rose by 46 cents to $76.35 per barrel. These price movements reflect ongoing dynamics in the global energy market, influenced by geopolitical factors and supply-demand considerations.
As energy prices fluctuate, they continue to play a crucial role in shaping economic forecasts and investor strategies. In currency markets, the U.S. dollar strengthened against the Japanese yen, rising to 154.42 from 154.18. The euro, however, saw a slight decline, costing $1.0385 compared to $1.0392 previously.
- These currency movements indicate broader trends in international trade and investment.
- Fluctuations can impact everything from import costs to foreign investment returns.
As global markets navigate these changes, investors remain vigilant, seeking opportunities amid the evolving economic landscape.
📎 Related coverage from: wivb.com
