Asia Shares Mostly Rise as Wall Street Gains on Tech Strength
Asian markets exhibited a largely positive trend on Friday, following the positive sentiment on Wall Street. The gains were primarily driven by strong earnings reports from Tesla, IBM, and Meta Platforms.
Key Highlights:
* Tokyo's Nikkei 225 edged up 0.1%, while the Kospi in South Korea declined 1.4%.
* Australia's S&P/ASX 200 advanced 0.3%, and the SET in Bangkok gained 0.1%.
* Markets in Hong Kong and Shanghai remained closed for the Lunar New Year holidays.
* On Thursday, the S&P 500 rose 0.5%, boosted by Meta Platforms' strong performance.
* Microsoft's decline of 6.2% partially offset the index's gains, despite exceeding profit expectations.
* Treasury yields held steady after a report indicating steady U.S. economic growth, albeit slightly slower than anticipated.
* U.S. crude gained 55 cents to $73.28 a barrel, while Brent crude rose 46 cents to $76.35 a barrel.
* The U.S. dollar appreciated against the Japanese yen and euro.
Impact of AI on Markets:
The announcement by Chinese startup DeepSeek raised concerns in the AI sector, leading to a decline in shares of SK Hynix and Samsung. However, Meta Platforms' emphasis on its AI efforts and the strong performance of Nvidia indicate sustained interest in the technology.
Economic Outlook:
The report on U.S. economic growth suggests a balanced trajectory, neither overheating nor slowing down significantly. However, uncertainties related to policy decisions in Washington remain a potential risk factor.