ASIA STOCKS: Asian Equities Mostly Higher, Led By Tech Stocks
Asian equities rose as risk sentiment improved, driven by US-Russia talks on Ukraine and renewed optimism for Chinese markets. Otherwise it has been a rather quiet session, with just Japanese PPI data, which came out stronger-than-expected at 4.2% vs 4.0% y/y
- Japanese stocks gained, with the Topix up 0.9% and the Nikkei rising 1.10%, supported by a weaker yen, which bolstered export-related stocks like Toyota (+1.8%). Investors remain focused on BOJ policy normalization and rising wages, which support domestic growth.
- Chinese and Hong Kong stocks advanced, supported by state backing for the property sector and momentum in AI stocks. Beijing is reportedly working on a 50b yuan funding plan for China Vanke, reinforcing government intervention to stabilize real estate. Markets shrugged off hotter-than-expected US CPI, focusing instead on long-term stimulus expectations. The HSI is trading 1.30% higher, with the HSTech Index up 1.95%, while the CSI 300 again lags, trading just 0.20% higher.
- South Korea's KOSPI is 0.90% higher with SK Hynix jumping 2.50%, it now trades 17.30% higher ytd. Taiwan's TAIEX is flat. Australia ASX 200 is 0.15% higher, while New Zealand's NZX50 is -0.30%.
- Regional markets traded cautiously ahead of key economic events. The Philippines’ central bank rate decision is in focus, while Indonesia, Thailand, and Malaysia are tracking global bond movements after US Treasury yields rose. Investors are also awaiting China’s money supply data, expected before February 15, for clues on liquidity conditions.
Despite hotter-than-expected US CPI, which led to a Treasury selloff and reduced expectations for Fed rate cuts, Asian markets looked past it. The broader market was further supported by oil price declines following US-Russia talks and stable Treasury yields.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
CHINA PRESS: China To Maintain Positive Export Growth Despite Tensions
China can maintain low single digit export growth in 2025 despite rising trade tensions with the U.S., supported by international trade accelerating from 3.1% in 2024 to 3.4% this year, according to Feng Lin, executive director at Orient Securities, who noted China’s exports have never contracted when global growth was positive. Feng said U.S. trade tensions will be mitigated by the flexibility and resilience of exporters as demonstrated during the first trade war from 2018 to 2019. Additionally, the relatively high prosperity of the global electronics industry, new energy vehicles and cross-border e-commerce will firm up demand for exports.
CHINA PRESS: China New Energy And Industries To Increase Demand For Non-Ferrous
China’s expansion of new infrastructure and energy industries in 2025 will drive growth in demand and prices for non-ferrous metal, noted Wang Hongying, dean at the China Financial Derivatives Investment Research Institute. Zeng Ning, deputy director at CITIC Futures, noted the real-estate sector will drag demand for commodities in the foreseeable future. Crude steel production is expected to decline in 2025 due to insufficient domestic demand, low industrial profits and output control policies, according to Wang Guoqing, director at the Lange Steel Network Research Centre, who also noted steel exports will decrease in 2025 to around 80-100 million tonnes due to increased global tariffs. (Source: 21st Century Business Herald)
CHINA PRESS: CSRC Prioritises Stabilising Captial Market
China’s top securities watchdog will make every effort to stabilise and boost the capital market in 2025 by leveraging the central bank's two structural monetary tools, and responding to market concerns promptly, according to a statement on the China Securities Regulatory Commission website. The CSRC will further facilitate the entry of medium and long-term funds, improve overseas listing registration, and expand cross-border connectivity of the capital market, the statement said.
