Japan’s GDP for the fourth quarter grew 0.7% quarter-on-quarter and 2.8% on an annualized basis, exceeding estimates of 1%. This marks a notable expansion, driven by various economic factors in the final stretch of 2024. However, Moody’s Analytics cautioned that Japan’s preliminary GDP figures are often subject to sizeable revisions.
In Japan, the Nikkei 225 traded around the flatline to close at 39,174.25, while the Topix added 0.28% to end at 2,766.9. South Korea’s Kospi rose 0.75% to 2,610.42, with the small-cap Kosdaq gaining 1.61% to finish at 768.48. Australia’s ASX 200 slipped 0.22% to close at 8,537.1. The Hang Seng Index in Hong Kong retreated by 0.15%, while the Hang Seng Tech Index, which tracks the 30 biggest technology firms listed in Hong Kong, fell 0.38%. Mainland China’s CSI 300 added 0.21% to close at 3,947.40.
The Reserve Bank of Australia has kickstarted its two-day meeting, potentially leading to an interest rate cut on Tuesday. Central banks in Indonesia and New Zealand are also set to announce their rate decisions on Wednesday. Tencent shares climbed to their highest level since July 2021, as the company’s Weixin messaging app began beta testing Deepseek integration.
Tencent shares last traded 4.25% higher. However, other Chinese tech stocks saw a decline following President Xi Jinping’s meeting with industry leaders, including Alibaba’s founder Jack Ma.
Japan’s GDP surpasses expectations
The Hang Seng Tech Index declined 0.75%, with shares of Baidu and JD.com falling 1.69% and 3.56%, respectively. Thailand’s fourth-quarter GDP data revealed a year-on-year growth of 3.2%, missing expectations of a 3.9% expansion. The Thai baht last traded at 33.67 against the greenback.
Following this, the SET Index fell 1.86%, hitting its lowest level since November 2020. In the U.S., the three major averages closed mixed on Friday. The Dow Jones Industrial Average dropped 165.35 points, or 0.37%, to close at 44,546.08.
The S&P 500 edged down 0.01% to 6,114.63, while the Nasdaq Composite gained 0.41% to finish at 20,026.77. Despite the mixed daily performance, all three indices logged weekly gains, buoyed by improved sentiment from U.S. President Biden’s tariff plans and favorable inflation data. Japan’s 5-year government bond yield reached 1.034%, the highest level since October 2008, reflecting the country’s economic growth figures for the fourth quarter.
Singapore’s non-oil domestic exports fell 2.1% year-on-year in January, following a 9% decline in December. While electronics shipments saw a rise, non-electronics exports decreased.
