HONG KONG — On Friday, most Asian stock markets saw gains, buoyed by positive performances on Wall Street, where major companies like Tesla, IBM, and Meta Platforms reported strong profits.
U.S. futures and oil prices experienced an uptick as well.
Japan’s core inflation rate increased to 2.5% in January, exceeding the central bank’s target of 2%, which suggests possible interest rate hikes in the future. Additionally, Japan’s unemployment rate for December improved, dipping to 2.4% from 2.5% the previous month.
The Nikkei 225 index in Tokyo rose slightly, finishing 0.2% higher at 39,572.49.
In South Korea, the Kospi fell 0.8% to 2,517.37 as trading resumed after the holiday break, affected by concerns stirred by the Chinese startup, DeepSeek, in the AI sector. Shares of SK Hynix, a critical supplier to Nvidia Corp., dropped nearly 10%, while Samsung saw a decline of 2.4%.
Australia’s S&P/ASX 200 climbed 0.5% to 8,532.30, whereas the Thai SET index fell by 0.9%. Markets in Hong Kong and Shanghai remained closed as they observed the lunar new year holidays.
On Thursday, the S&P 500 rose 0.5% to 6,071.17, with approximately 80% of the stocks in the index recording gains. The Dow Jones Industrial Average increased by 0.4% to 44,882.13, and the Nasdaq composite gained 0.3%, reaching 19,681.75.
Meta Platforms contributed to the upward momentum, increasing by 1.6% after reporting better-than-expected earnings for the end of 2024. The company also expressed optimism about its artificial intelligence initiatives and its ongoing investments in the sector, helping ease concerns sparked earlier by DeepSeek’s announcement of a new language model that could compete without high-end chips. This development prompted questions regarding the need for extensive investments in AI infrastructure, creating market jitters earlier in the week.
The AI surge has significantly driven the U.S. stock market to record levels, but it has also negatively impacted stocks like Nvidia, which experienced fluctuations throughout the day but managed to close up 1%, becoming one of the key factors propelling the S&P 500.
However, Microsoft’s stock weighed on overall indexes, falling 6.2%. The technology giant surpassed earnings expectations but faced scrutiny for slower-than-anticipated growth in its cloud services, a critical component of its AI strategy.
CEO Satya Nadella mentioned DeepSeek’s innovations and stressed that reduced costs and greater efficiency in AI could lead to higher consumption and increased app development.
Treasury yields remained steady Thursday, following a report indicating the U.S. economy expanded at a healthy rate at the end of 2024, though slightly below economists’ forecasts. The yield on 10-year Treasuries edged down to 4.52%, down from 4.53% the previous day.
The economic report suggested a “Goldilocks” scenario—neither too hot nor too cold—according to EY’s chief economist Gregory Daco, who also pointed out several uncertainties in Washington, including potential changes in income tax rates, tariffs, and immigration policies that could impact the economy’s outlook.
In the energy markets, benchmark U.S. crude gained 57 cents, bringing it to $73.30 per barrel, while Brent crude, the international benchmark, rose by 37 cents to $76.26 per barrel.
In currency exchanges, the U.S. dollar climbed to 154.67 Japanese yen, up from 154.18 yen. The euro traded at $1.0399, increasing from $1.0392.
Today’s stock market overview: Asian equities rise following gains in Wall Street tech sector
