Asian Equities Rally Following Strong Wall Street Performance

Asian equities rallied following a strong Wall Street performance on U.S. tariff news. Investors reacted to trade updates, economic data, and stock gains across key Asia-Pacific indices.

Asian markets mostly rose on Friday, tracking Wall Street’s overnight rally after U.S. President Donald Trump signed a reciprocal tariffs plan, though enforcement remains uncertain. Investors responded positively to the latest trade developments, while key economic data from the U.S. and Asia influenced sentiment.

Stock Market Performance

Japan’s Nikkei 225 fell 0.75%, while the broader Topix index remained relatively unchanged. In contrast, South Korea’s Kospi advanced 0.59%, and the Kosdaq gained 1.11%. South Korea’s unemployment rate dropped to 2.9% in January, improving from 3.7% in December.

China’s’ CSI 300 index climbed 0.7%, and Hong Kong’s’ Hang Seng Index surged 1.76%, continuing its bullish trend from the previous session. Australia’s’ S&P/ASX 200 increased 0.19% after hitting a record intra-day high on Thursday.

The Nifty 50 opened flat in India, while the BSE Sensex increased by 0.29%. According to LSEG data, analysts expect India’s wholesale price inflation to rise to 2.5% in January, up from 2.3% in December.

Southeast Asia also posted mixed results. Singapore’s’ GDP expanded by 4.4% in 2024, marking its fastest growth rate since 2021. Despite the strong economic performance, the Straits Times Index slipped 0.12% after the GDP report. Malaysia’s’ economy grew 5.1% in 2024, exceeding the 4.8% estimate from Reuters, with a 5% GDP expansion in the year’s final quarter.

Asian Equities Rally Following Strong Wall Street Performance

Commodities and Bond Yields

Commodity prices remained volatile. Gold traded at $2,956.35 per ounce, up 0.43%, while silver surged 1.88% to $33.25 per ounce. Brent crude oil gained 0.19% to $75.19 per barrel, and WTI crude oil increased 0.13% to $71.37 per barrel.

Bond yields showed minor fluctuations. The U.S. 10-year Treasury yield stood at 4.530%, while the UK year yield settled at 4.490%. Germany’s yield reached 2.419%.

Wall Street’sStre’ction

U.S. stock markets closed higher as investors digested fresh inflation data and updates on trade policy. The Dow Jones Industrial Average jumped 342.87 points (0.77%) to 44,711.43, while the S&P 500 climbed 1.04% to 6,115.07. The Nasdaq Composite outperformed, gaining 1.50% to close at 19,945.64.

The rally accelerated after President Trump signed a memorandum to review reciprocal tariffs, suggesting that foreign non-tariff trade policies could be deemed unfair, potentially triggering retaliatory measures. Investors viewed the move as a measured approach that avoids immediate disruptions to global trade.

Key Economic Data and Upcoming Events

The U.S. Core Producer Price Index (PPI) remained at 0.3%, which is in line with expectations, while overall PPI rose 0.4%, slightly above the forecasted 0.3%. Weekly jobless claims came in at 217,000, compared to the expected 213,000, indicating a still-resilient labor market.

Investors are now focused on key economic releases later in the day, including:

• 01:30 PM GMT – U.S. Core Retail Sales (m/m)
• 01:30 PM GMT – U.S. Retail Sales (m/m)

Asian markets continue to show resilience despite global trade uncertainties, with strong performances in China, Hong Kong, and Malaysia bolstering investor confidence. Market participants remain watchful of upcoming data releases and trade policy developments that could shape sentiment in the days ahead.

Stay Updated with the Latest Market News. Visit our YouTube Channel for the Latest Forex Analysis.