Stock market indexes in China and Hong Kong advanced after the People's Bank of China held its one-year lending rate steady. China's top financial regulator urged insurance and other investment companies to increase exposure to Chinese stocks.
Japan's exports soared to a record high, and imports accelerated at the fastest pace in three months in December. Japan's labor unions at large companies kicked off annual spring wage negotiations seeking to surpass the record wage increases in 2024.
Japan's benchmark indexes surged more than 1% following a rebound in semiconductor equipment makers and artificial intelligence-linked stocks. The Bank of Japan is scheduled to announce its rate decisions and inflation outlook on Friday.
Stock market indexes in China and Hong Kong closed down more than 1% in volatile trading following a sharp decline in Internet and artificial intelligence technology-linked stocks.
Stock market indexes in Tokyo struggled to stay above the flatline as investors debated the future rate path ahead of the Bank of Japan's rate decisions next week.
In cautious trading, investors bid up stocks in China and Hong Kong in the hopes that trade and military relations may improve with the U.S. in the weeks ahead. For now, the U.S. delayed imposing additional tariffs on China to February.
Stock market indexes in Hong Kong and China surged as investors hoped that the world's two largest economies may avoid trade confrontation in the months ahead.
Japan's benchmark indexes extended losses in a holiday-shortened week amid rate path and domestic economic growth worries. For the week, the Nikkei 225 stock average and TOPIX dropped around 2%.
Investors took in stride the latest batch of economic data pointing to slowing activities and a weakening jobs market. Aggressive stimulus measures and strong growth in exports supported GDP growth in the fourth quarter.
Japan's annual producer price inflation held steady in December from the previous month. The Japanese yen inched higher to a four-week high after the Bank of Japan governor Kazuo Ueda said that the policy committee is ready to discuss a possible rate increase at its upcoming meeting.
China's fourth-quarter economic growth is estimated to accelerate, fueled by a raft of stimulus measures and steps to support activities in the property market.
Caution prevailed in Tokyo trading amid a shift in geopolitical and international trade scenarios and the fast development in artificial intelligence technology moving to software development from hardware infrastructure.
Investors remained cautious in China and Hong Kong ahead of the release of fourth quarter economic growth data on Friday. Three new companies started trading in Hong Kong and Shanghai.
