Asia-Pacific Markets Gain as Focus on Central Bank Decisions

Asia-Pacific stock markets traded mostly higher on Monday as investors assessed Japan’s latest economic growth data and anticipated upcoming central bank decisions.

Stock Market Performance:

• Japan: Nikkei 225 gained 0.15%, while the broader Topix advanced 0.29%.
• South Korea: Kospi climbed 0.18%, with the small-cap Kosdaq surging 1.2%.
• China: The Shanghai Composite rose 0.15%, while the CSI 300 remained flat.
• Hong Kong: The Hang Seng Index increased 0.13%, though the Hang Seng Tech Index dipped 0.11%.
• Australia: The S&P/ASX 200 declined 0.37%.

Economic Data and Currency Movements

Japan’s economy showed stronger-than-expected growth in the fourth quarter, with preliminary GDP data indicating a 2.8% annualized expansion, surpassing the expected 1%. Following the report, the Japanese yen strengthened to 151.95 against the U.S. dollar.

Thailand’s economy grew by 3.2% year-on-year in the fourth quarter, falling short of the projected 3.9% increase. The country’s GDP growth stood at 2.5%, highlighting a slower-than-expected recovery.

Asia-Pacific Markets Gain as Focus on Central Bank Decisions

Commodities and Bond Yields

• Gold rose 0.33% to $2,909.35 per ounce, while Silver gained 0.38% to $33.75.
• Oil Prices: Brent crude climbed 0.12% to $74.90 per barrel, while WTI crude edged up 0.03% to $70.70.
• Bond Yields: The U.S. 10-year yield stood at 4.491%, the UK 10-year yield at 4.499%, and Germany’s 10-year yield at 2.423%.

Central Bank Watch

Investors are keenly observing central bank decisions set for this week. The Reserve Bank of Australia has begun a two-day policy meeting, with analysts speculating on a potential interest rate cut announcement on Tuesday. Meanwhile, Indonesia and New Zealand’s central banks are scheduled to reveal their monetary policy decisions on Wednesday.

U.S. Market Recap

Wall Street closed mixed on Friday:

• Dow Jones Industrial Average: Fell 165.35 points (0.37%) to 44,546.08.
• S&P 500: Dipped 0.01% to 6,114.63.
• Nasdaq Composite: Rose 0.41% to 20,026.77.

Despite weaker-than-expected retail sales data in the U.S., all three major indices recorded weekly gains, driven by optimism over easing tariff concerns and better-than-anticipated inflation figures.

Upcoming Economic Events

• 01:15 PM GMT – Canada: Housing Starts Data Release.

Investors remain cautious but optimistic as they await key economic indicators and policy decisions that could shape market movements in the coming weeks.

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