Asian stocks showed mixed performance on Monday, despite a sharp rebound in US equities on Friday, driven by strong technological sector gains.
China and Hong Kong markets trade flat
China’s Shanghai Composite index traded flat as US-China trade tensions and uncertainty about stimulus policies weighed on sentiment.
Hong Kong’s Hang Seng index also traded flat despite a measure of China’s services activity reaching a seven-month high.
China’s services activity expanded at the fastest pace in seven months in December, driven by a surge in domestic demand.
However, orders from abroad declined, highlighting growing trade risks to the economy, according to a private sector survey released on Monday.
The Caixin/S&P Global services purchasing managers’ index (PMI) rose to 52.2 in December, up from 51.5 the previous month, marking the fastest growth since May 2024. The index surpassed the 50-mark, indicating expansion.
Japan’s markets open deep in red
On the opening day of trading for the new year, both the Nikkei 225 and Topix indices dipped.
The Nikkei 225, a benchmark index, fell by 141.70 points (0.36%) to 39,752.84 within the first 15 minutes of trading.
Similarly, the broader Topix index shed 9.29 points (0.33%) to 2,775.63.
At the time of writing, the Nikkei index was trading over 1% lower, marking a sluggish start to the year.
The yen gave up some of its recent gains, trading around 157 per dollar.
Japan’s service sector activity grew in December, driven by strong demand and continued business expansion, according to the final au Jibun Bank Services PMI by S&P Global Market Intelligence.
The PMI rose to 50.9, up from 50.5 in November, marking the second consecutive month above the 50.0 threshold, which separates expansion from contraction.
Other Asian markets
The Kospi index jumped 1.6% after a court dismissed an appeal by lawyers of President Yoon Suk Yeol regarding an arrest warrant tied to his impeachment case.
Samsung Electronics, the leading KOSPI stock, is rising, while SK Hynix, LG Energy Solution, KB Financial Group, and NAVER were also racing at the bourses on Monday.
Australian markets saw marginal gains, led by technology stocks mirroring US gains, while the mining sector lagged as iron ore prices fell.
Wall Street’s comeback on Friday
US stock ended their five straight session losing streak on Friday.
The stocks made a strong comeback on Friday, with the major averages all moving sharply higher, led by the tech-heavy Nasdaq.
The Nasdaq surged 340.88 points, or 1.8%, to 19,621.68, the S&P 500 jumped 73.92 points, or 1.3%, to 5,942.47, and the Dow climbed 339.86 points, or 0.8%, to 42,732.13.
Despite the rebound, the major averages ended the holiday-interrupted week lower, with the Dow down 0.6%, and both the Nasdaq and the S&P 500 falling 0.5%.
The Nasdaq and S&P 500 had closed lower for five consecutive sessions, with the Nasdaq hitting its lowest closing level in a month on Thursday.
However, the major averages remain well below the record highs set in December amid ongoing uncertainty about the market outlook after recent volatility.
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