Asia’s Stock Markets Surge Amid Positive Indicators and Wall Street Rally
Asian stock markets rose on Monday following Wall Street’s positive performance and encouraging economic data from China. Japan’s Nikkei 225, Hong Kong’s Hang Seng, and other regional indices showed strong gains, fueled by robust retail sales and industrial output, despite declines in some sectors.
Asian stock markets demonstrated a notable increase on Monday, buoyed by a positive rebound on Wall Street and robust economic data released by Beijing for early 2025. Primarily, markets in Hong Kong, Shanghai, and Tokyo closed on a high note, reflecting a broader trend across the region.
In Japan, the Nikkei 225 benefited from favorable U.S. cues, closing up by 0.9%, reaching 37,396.52, amid significant gains in defense and technology sectors. Mitsubishi Heavy Industries led the rise with a remarkable 12.2% increase, while staffing agency Recruit saw a decline of 5.5%.
News reports indicate that Japan’s defense shares advanced after the U.S. ambassador-nominee advised Japan to increase military expenditure. Concurrently in Hong Kong, the Hang Seng Index rose by 0.8% as positive economic indicators emerged from China for January and February 2025, achieving a closing value of 24,145.57.
The strength of the Hang Seng was reflected in 54 gainers compared to 27 losers, bolstered by a high-performing natural gas supplier, ENN Energy, which saw an 8% increase. However, automaker Li Auto faced a setback, declining 7.2%.
On the mainland, the Shanghai Composite Index experienced a modest rise of 0.2%, reaching 3,426.13. Economic reports indicated a year-on-year retail sales growth of 4% for the January-February period, alongside a 5.9% increase in industrial output. However, new home prices in 70 cities saw a year-on-year decrease of 4.8% in February.
Regional performance varied, with the S. Korean KOSPI up 1.7%, the Taiwan TWSE up 0.7%, the Australian ASX up 0.8%, and the Singapore Straits Times Index rising by 0.6%. In contrast, the Thai Set Index decreased by 0.3%, while the Mumbai Sensex advanced by 0.5% in late trading.
In summary, Asian stock markets exhibited significant gains driven by encouraging Wall Street trends and strong economic indicators from China. Japan and Hong Kong notably led the market advancements, fueled by positive company performances and investor optimism regarding defense spending. Despite some areas of decline, particularly in property prices, the overall outlook for the region remains optimistic.
Original Source: www.tradingview.com
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