What's Affecting Markets Today
Asia-Pacific markets traded mixed on Friday as investors assessed Japan’s inflation data and remained cautious over potential tariffs under U.S. President Donald Trump.
In Japan, the Nikkei 225 fell 0.43%, while the Topix declined 0.33%. January’s inflation rate climbed to 4%, its highest since January 2023. Core inflation, excluding fresh food prices, rose to 3.2%, exceeding Reuters’ forecast of 3.1%.
In South Korea, the Kospi edged 0.42% lower, while the Kosdaq gained 0.43%.
Hong Kong’s Hang Seng Index jumped 2.25%, with the Hang Seng Tech Index up 3.44%. Alibaba surged 11% after reporting strong December quarter earnings, driven by growth in its Cloud Intelligence and e-commerce businesses. China’s CSI 300 gained 0.4%.
Investors are closely monitoring the Japanese yen, which strengthened to a two-month high of 150.52 per U.S. dollar on Thursday amid expectations of further Bank of Japan rate hikes. The yen is currently trading at 150.22 against the dollar.
ASX Stocks
ASX 200 - 8,297.3 (-0.30%)
The S&P/ASX 200 declined 0.2% to 8303.70 in afternoon trade, marking a new one-month low as weakness in consumer discretionary stocks and Commonwealth Bank weighed on the market. The Australian dollar edged above US64¢.
Consumer discretionary stocks led losses, falling 1.8%, after Walmart’s weaker guidance dampened sentiment. Wesfarmers dropped 2.7%, while Commonwealth Bank fell 2.3%, tracking a broader US banking sell-off.
Gains in insurers and pharmaceuticals helped limit losses. QBE advanced 4.5% on strong half-year earnings and a dividend increase, while Telix Pharmaceuticals surged 13.2% on solid 2024 results.
Iron ore miners rallied as BHP rose 2.2%, Fortescue 2.6%, and Rio Tinto 2.9%, supported by iron ore prices at US$108/tonne.
In corporate news, Domain soared 39.4% after CoStar launched a takeover bid, lifting Nine Entertainment 20.6%, while REA Group fell 10%. Guzman y Gomez dropped 9.4% on earnings disappointment.
Elsewhere, Newmont fell 1.6%, Spark NZ slumped 18.6% on weaker guidance, and Accent Group rose 2.4% despite slashing its dividend.
Leaders
SPK – Spark New Zealand Ltd (-18.94%)
PWH – PWR Holdings Ltd (-12.52%)
GYG – Guzman Y Gomez Ltd (-12.27%)
JIN – Jumbo Interactive Ltd (-11.53%)
REA – REA Group Ltd (-11.41%)
Laggards
DHG – Domain (+39.42%)
NEC – Nine Ent (+21.35%)
ASB – Austal Ltd (+14.01%)
TLX – TELIX Pharma (+12.93%)
NAN – Nanosonics Ltd (+6.69%)
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