Asian Markets Rise Amid Economic Data, Trump Policy Focus
Asian equity markets predominantly traded higher on Monday as investors monitored economic data and policy developments from US President Donald Trump, which could influence upcoming central bank actions.
Japan's Nikkei 225
Japan's benchmark Nikkei 225 rose initially after official data revealed a better-than-expected annual economic growth rate of 2.8% in Q4 2023. However, it later fluctuated and ended slightly higher, up less than 0.1% at 39,164.87. Japan's economy expanded for the third consecutive quarter, growing 0.7% on a quarterly basis.
Regional Markets
* Australia's S&P/ASX 200 declined 0.6% to 8,503.70.
* South Korea's Kospi surged 0.8% to 2,610.91.
* Hong Kong's Hang Seng gained 0.6% to 22,752.20.
* Shanghai Composite rose 0.2% to 3,352.01.
Wall Street's Performance
Wall Street closed mixed last week, with the S&P 500 edging lower by less than 0.1%. Despite concerns over higher interest rates and inflation, companies reporting strong earnings have supported market performance.
Interest Rates and Inflation
The Federal Reserve's interest rate policy remains a key focus. Although inflation remains elevated, analysts believe that President Trump's recent tariff announcement could provide a buffer against a global trade war.
Treasury Yields
The yield on the 10-year Treasury fell to 4.47% on Friday, reflecting market uncertainty following the Fed's cautious stance on interest rate cuts in 2025 due to inflation concerns.
Energy Markets
US crude oil prices dipped 17 cents to settle at $70.57 per barrel, while Brent crude slipped 13 cents to $74.61 per barrel.
Currency Trading
The US dollar weakened against the Japanese yen, trading at 151.60 yen. The euro strengthened against the dollar, reaching $1.0594.