The Asia-Pacific markets experienced predominantly positive trading on Monday. Investors were focused on analyzing Japan's fourth-quarter economic growth data while anticipating key central bank decisions from the region. These developments have significantly influenced market trends and investor sentiments.
In Japan, the Nikkei 225 hovered around the flatline, while the Topix index added 0.29%. This comes in the wake of Japan's preliminary government data revealing that its economic expansion in the fourth quarter surpassed analysts' expectations. The GDP growth on an annualized basis was recorded at 2.8%, exceeding the Reuters forecast of 1%.
The Japanese yen also showed strength, trading at 151.95 against the US dollar. This strengthening is a significant indicator of investor confidence in the Japanese economy.
South Korea's Kospi increased by 0.18%, while the small-cap Kosdaq saw a rise of 1.2%. Conversely, Australia's S&P/ASX 200 index experienced a decline, slipping by 0.64%. In Hong Kong, the Hang Seng index rose by 0.23%, and the Hang Seng Tech Index, tracking the 30 largest technology firms listed in Hong Kong, increased by 0.35%. Mainland China's CSI 300 traded flat, indicating a stable market environment.
Thailand released its fourth-quarter GDP data, revealing a year-on-year economic growth of 3.2%. This figure fell short of the 3.9% expansion anticipated by Reuters. For the entire year, Thailand's GDP growth was reported at 2.5%.
The Reserve Bank of Australia has commenced its two-day meeting, with potential interest rate decisions expected on Tuesday. Both Indonesia and New Zealand's central banks are also slated to announce their rate decisions on Wednesday, which could further impact regional market dynamics.
In the United States, the three major averages closed mixed on Friday. The Dow Jones Industrial Average fell by 165.35 points, or 0.37%, ending at 44,546.08. The S&P 500 saw a minor decrease of 0.01% to 6,114.63, while the Nasdaq Composite added 0.41%, closing at 20,026.77.
On a weekly basis, all three major averages recorded gains. This positive trend was driven by improved sentiment following more clarity regarding U.S. President Donald Trump's tariff plans. Additionally, new inflation data proved to be more favorable than initially expected, despite a 0.9% drop in retail sales for January, which was worse than the 0.2% decline anticipated by Dow Jones.
—CNBC's Pia Singh and Lisa Kailai Han contributed to this report.
