Tokyo stock indexes traded at new record highs, and indexes in Shanghai and Hong Kong extended weekly and three-year losses after several leading companies announced earnings declines.
Stock markets in Asia traded higher after the U.S. Federal Reserve held its interest rates steady, as widely anticipated. Japan's February exports soared 8% after vehicle and electrical machinery exports rose to Europe and the U.S.
The People's Bank of China held its one-year and five-year rates steady as widely anticipated, but the central bank failed to provide additional stimulus. The yen drifted lower for the second day after the Bank of Japan ended its eight-year-old negative rate policy.
The Bank of Japan lifted its rate above zero for the first time in 17 years, ended stock ETF purchases to support its stock market, and stopped targeting yield rates for Japanese government bonds.
China reported better-than-expected retail sales, fixed investment, and industrial output data for the January–February period but postponed the release of the youth unemployment rate for February. India's overall trade deficit plunged in February.
China's new home prices declined for the ninth consecutive month and the People's Bank of China held its 1-year interest rate. The Bank of Japan is scheduled to announce its rate decision next week.
Large wage increases in Japan raised hopes that the Bank of Japan may be nearing the end of its two-decade-long negative interest rate policy as early as next week. Stocks in Shanghai were under pressure amid rising tensions with the U.S. and ahead of earnings announcements next week.
Stocks in China rebounded in the hopes that the current stock buybacks may stabilize financial markets. Japanese investors looked ahead to the monetary policy decisions next week. India's inflation held steady, but industrial production moderated.
Chinese lawmakers ended their annual gathering and failed to announce substantial stimulus to property markets and measures to stabilize financial markets. Chinese companies stepped up their stock buyback plans. Japan's producer price inflation rebounded.
Japan's fourth quarter GDP was revised higher, and the Japanese yen edged up. Benchmark indexes in Shanghai and Hong Kong advanced after China's February consumer price inflation rebounded and foreign fund flows turned positive after six months of decline.
Rate jitters dominated trading in Tokyo, and record low bond yields in Shanghai hovered over stock markets in China. China's exports and trade surplus rose more than expected in the January–February holiday months. India is likely to surpass its economic growth target in the current fiscal year.
Japan's household spending declined for the tenth month in a row on a sharp fall in food, fuel, transportation, and housing costs. Japan's current account swings to a surplus in January.
China lowered its economic growth estimate to around 5% and announced its plan to sell one trillion yen of debt as the second-largest economy in the world faces weak consumer sentiment and protracted property market malaise.
The Australian economy barely expanded in the final quarter of 2023 amid weak consumer demand growth and high interest rates. Chinese lawmakers debate future growth policies driven by advanced technology.
The Nikkei index in Tokyo closed at a new high following a rally in tech stocks and foreign investors' enthusiasm about corporate earnings. China's market indexes are likely to falter if policymakers fail to provide solid financial and economic stimulus measures to stabilize financial markets.
