Asian Stocks Fall, US Futures Rise Amid Tech Pressure

Overview

Asian equities declined on Friday, dragged lower by technology companies, while US futures advanced on strong earnings from Apple Inc.

Asian Markets

* Asian equities gauge fell after two days of gains, despite gains in Australian stocks.
* Mainland China, Hong Kong, and Taiwan markets remain closed for the Lunar New Year holiday.
* SK Hynix Inc. and Samsung Electronics Co. dropped, weighing on South Korea's Kospi.

US Markets

* Futures for the S&P 500 and Nasdaq 100 rose on Friday after both benchmarks gained 0.5% on Thursday.
* Apple's post-market rally boosted US contracts following the iPhone maker's revenue beat.
* Earnings of mega-cap tech companies are under increased scrutiny after the sell-off in AI-related stocks earlier this month.

Tech Sector

* Nvidia shares rose on Thursday but remained on track for their worst week since September.
* SK Hynix, a key supplier to Nvidia, fell as South Korean stocks resumed trading after holidays during which Chinese startup DeepSeek made waves in the AI industry.
* Samsung Electronics stock declined after its chip division reported a lower-than-expected profit.

Currencies

* Mexico and Canada's currencies fell on Thursday after President Donald Trump threatened to impose tariffs.
* The yen maintained its gains from the previous session, trading around 154 per dollar.
* The euro remained steady after declining against the dollar.
* German bonds held gains after the ECB's expected rate cut.

US Economy

* Treasuries were steady after Thursday's session.
* The dollar gauge rose for a fifth day.
* The PCE index is expected to show a slight acceleration in price hikes to 2.6% from a year earlier.
* Gold edged higher, trading around $2,797 per ounce.
* Oil prices also rose, with WTI at around $73 per barrel.

Outlook

* Friday's PCE index is expected to indicate elevated inflation and potential market jitters.
* The US economy expanded at a solid pace in late 2024 despite drags from Boeing Co. and inventory investment.
* Consumer spending remains robust, driving economic growth and supporting risk assets.

Key Events This Week

* US personal income & spending, PCE inflation, employment cost index, Friday