Wednesday 5th February 2025: Asia-Pacific Markets Mixed as Wall Street Rallies Amid Trade Tensions

Global Markets:
- Asian Stock Markets : Nikkei up 0.12%, Shanghai Composite down 0.83%, Hang Seng down 1.13% ASX up 0.5%
- Commodities : Gold at $2887.35 (0.43%), Silver at $32.95 (-0.28%), Brent Oil at $76.59 (-0.19%), WTI Oil at $72.64 (-0.13%)
- Rates : US 10-year yield at 4.512, UK 10-year yield at 4.5210, Germany 10-year yield at 2.392

News & Data:
- (USD) JOLTS Job opening 7.60M vs 8.01M expected

Markets Update:
Asia-Pacific markets were mixed Wednesday as Wall Street gained overnight, shrugging off Trump’s tariffs and China’s retaliatory measures. China resumed trading after the Lunar New Year break, with investors closely monitoring its response to U.S. duties. Morningstar’s Asia equity analyst Kai Wang noted that China’s tariffs on U.S. imports are largely symbolic, affecting only 12% of total imports. While the immediate risk appears limited, uncertainties remain as trade tensions could escalate given Trump’s unpredictable stance, keeping market volatility a key concern.

Mainland China’s CSI300 Index opened higher but later declined 0.27%, while the Caixin Services PMI fell to 51.0 in January from 52.2 in December, indicating a slowdown in services activity. Hong Kong’s Hang Seng dropped 0.69%, reversing previous gains. In Japan, the Nikkei 225 edged down 0.12%, with the broader Topix index remaining flat. South Korea’s Kospi climbed 1.16%, while the Kosdaq advanced 1.31%. The country’s January consumer price index rose 0.7% month-on-month and 2.2% year-on-year, exceeding expectations.

Indian markets saw modest gains as investors awaited the Reserve Bank of India’s monetary policy decision, anticipating a rate cut. The Nifty 50 rose 0.11%, while the BSE Sensex inched up 0.15%. Meanwhile, Australia’s S&P/ASX 200 gained 0.61%, tracking overall regional movements.

In the U.S., markets closed higher, fueled by strong earnings reports. Palantir surged 24% on solid quarterly results, while Nvidia rose 1.7%. The Nasdaq Composite jumped 1.35% to 19,654.02, the S&P 500 climbed 0.72% to 6,037.88, and the Dow Jones gained 134.13 points to close at 44,556.04.

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Publication date:

05 February 2025 - 13:21 (GMT)