Asian Stocks Rise on AI Hopes, Offset by China Tariffs
Asian markets witnessed modest gains as optimism over increased artificial intelligence (AI) spending under US President Donald Trump was counterbalanced by concerns regarding Chinese tariffs.
Sector Performance
Technology stocks in Taiwan and Japan led the gains, driven by announcements of AI investments by Trump. In contrast, Chinese stocks experienced a broader decline, with the CSI 300 Index dropping up to 1.3% and the Hang Seng China Enterprise Index falling as much as 2.1%.
Macroeconomic Factors
The divergent performance highlights the complex landscape facing investors as the Trump administration is expected to implement significant policy changes. Concerns over corporate earnings and Trump's comments on a potential 10% tariff on Chinese goods weighed on Chinese markets.
Central Bank Actions
In Japan, the Bank of Japan is considering raising interest rates at its policy meeting this week, according to Kyodo News. This follows speculation of a 25 basis point hike.
Company News
SoftBank Group's shares surged over 9% after Trump named it as a participant in the 'Stargate' AI joint venture, pushing its share price to a seven-month high.
New Zealand Inflation
Data from New Zealand revealed that annual inflation remained steady in the final quarter of 2022, exceeding the central bank's target.
US Market
In the US, Netflix reported record subscriber growth, benefiting from live sports streaming and the resurgence of "Squid Game." AI-focused exchange-traded funds reached a three-year peak. Small-cap stocks rallied on expectations of support from protectionist policies.
Commodities
Oil prices declined after Trump's tariff threat, while gold maintained its value near recent highs.
Key Events
* US Conference Board leading index (Wednesday)
* Samsung Galaxy "Unpacked 2025" event (Wednesday)
* Eurozone consumer confidence (Thursday)
* US jobless claims (Thursday)
* Bank of Japan policy meeting (Friday)
Market Movements
* S&P 500 futures: +0.3%
* Japan's Topix: +0.9%
* Australia's S&P/ASX 200: +0.4%
* Hong Kong's Hang Seng: -1%
* Shanghai Composite: -0.7%