On Friday, Asian stocks concluded with varied results, as growing concerns about potential tariffs from the Trump administration overshadowed positive data from China. Additionally, comments from Federal Reserve Governor Christopher Waller hinted at a potential rate reduction within the first half of 2025, provided that inflation trends remain favorable.
The dollar experienced a decline in Asian trading, while oil and gold seemed set to achieve weekly gains. In China, the Shanghai Composite Index rebounded from an initial decline, closing 0.18% higher at 3,241.82, following better-than-expected fourth-quarter GDP figures.
According to the National Bureau of Statistics, GDP rose by 5.4% year-on-year in the fourth quarter, up from 4.6% in the previous quarter. Over the entirety of 2024, the economy grew by 5.0%, meeting the official growth target.
Further data indicated that industrial production surged by 6.2% in December, surpassing the forecasted stable growth of 5.4%. Retail sales increased annually by 3.7%, exceeding the expected 3.5%. Fixed asset investment rose by 3.2% year-on-year in 2024, falling slightly short of the anticipated 3.3%, while property investment declined by 10.6% compared to the previous year. The unemployment rate slightly increased to 5.1% in December, up from 5.0% in November.
In Hong Kong, the Hang Seng Index climbed 0.31% to 19,584.06, although China Vanke shares plunged 3.6% following state media reports of the detention of CEO Zhu Jiusheng.
Japanese markets experienced a slight dip as the yen strengthened amid expectations of a potential rate hike from the Bank of Japan in the upcoming week. Earlier, BoJ Governor Kazuo Ueda suggested that a rate increase might occur if economic and price conditions continue to improve.
The Nikkei average fell by 0.31% to 38,451.46, and the broader Topix Index decreased by 0.33% to 2,679.42. Nintendo shares dropped 4.3% as the teaser for a new console failed to excite investors.
In Seoul, stocks ended marginally lower, following an unexpected decision by the Bank of Korea to maintain its policy interest rate at 3.00%, contrary to expectations of a 25-basis point reduction. The Kospi average fell 0.16% to 2,523.55. SK Hynix saw a 2.1% rise after Taiwan Semiconductor Manufacturing exceeded analyst expectations for the fourth quarter, driven by robust sales of AI chips.
Australian markets closed lower amid cautious sentiment ahead of a U.S. holiday weekend and President-elect Donald Trump's inauguration. The S&P/ASX 200 ended down 0.20% at 8,310.40, pressured by banking stocks. The broader All Ordinaries Index slipped 0.14% to 8,557.40. Rio Tinto's shares fell 0.7% following reports of previous merger discussions with Glencore.
In New Zealand, the S&P/NZX-50 Index saw a 1% rally to 13,130.43, largely driven by gains in Fisher & Paykel Healthcare.
In the United States, stocks experienced profit-taking following significant gains in the previous session, driven by a favorable inflation reading and robust bank earnings. The Nasdaq Composite fell by 0.9%, while the Dow and the S&P 500 each declined by around 0.2%, despite a drop in bond yields.
Economic reports revealed a larger-than-expected slowdown in retail sales growth for December and an increase in weekly jobless claims. However, manufacturing activity in the U.S. Mid-Atlantic region saw its most substantial increase in approximately four and a half years in January, according to various data releases.
The material has been provided by InstaForex Company -
www.instaforex.com
