Asian Stock Market Today: Mixed Performance Amid Economic and Geopolitical Influences

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Asian stock markets displayed a mixed performance today as investors balanced economic data, corporate earnings, and geopolitical developments.

While some indices posted marginal gains, others experienced declines due to concerns over global trade and inflation.

Japan: Nikkei 225 Sees Marginal Gains

The Nikkei 225 closed slightly higher, gaining less than 0.1%. The market was buoyed by strong economic data, with Japan’s Q4 GDP growth reported at 2.8% annualized, driven by exports and consumer spending.

The Japanese yen strengthened against the U.S. dollar, further reflecting confidence in the economy.

China and Hong Kong: Tech Stocks Boost Alibaba, Markets Struggle

Mainland Chinese markets ended slightly lower, while Hong Kong’s Hang Seng Index dropped less than 0.1%. A major highlight was Alibaba’s 24% surge following reports of a strategic AI collaboration with Apple. Goldman Sachs also revised its China growth outlook positively, citing potential benefits from AI-driven advancements.

South Korea: Kospi Index Gains 0.8% on AI Developments

South Korea’s Kospi index rose 0.8%, with investor optimism fueled by the government’s announcement of plans to secure 10,000 high-performance GPUs for its AI computing infrastructure. This initiative aims to strengthen South Korea’s position in the global AI market.

India: Nifty 50 and Sensex Decline Amid Valuation Concerns

India’s stock market faced selling pressure, with the Nifty 50 falling 0.75% to 22,759.35 and the BSE Sensex declining 0.69% to 75,403.65.

High valuations and subdued corporate earnings dampened investor sentiment. The auto sector was a major loser, with Mahindra & Mahindra dropping 3.75% after weaker-than-expected electric vehicle booking numbers.

Singapore: Straits Times Index Hits Record High

The Straits Times Index (STI) reached a record closing high of 3,904.85, reflecting strong confidence in Singapore’s economy and investment climate.

Market Outlook: Cautious Optimism Amid Global Uncertainties

Overall, Asian markets remain cautiously optimistic. While positive domestic economic trends and AI-related investments provide a bullish outlook, concerns over global trade policies, inflation, and geopolitical tensions continue to weigh on investor sentiment.

Market participants will be closely monitoring central bank policies and corporate earnings in the coming weeks.

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