Asian equity markets demonstrated broad-based gains on Friday, propelled by a confluence of factors including robust corporate earnings and anticipatory sentiment surrounding U.S. policy developments. The trading session reflected a cautiously optimistic regional outlook, diverging from the previous day’s mixed performance on Wall Street.
Japan’s Nikkei 225 index emerged as a standout performer, advancing 1.1% to close at 51,692.70. This surge was significantly driven by exceptional results from Fast Retailing, the parent company of global apparel brand Uniqlo. The retailer’s shares skyrocketed over 7% following the announcement of a remarkable 34% year-on-year increase in quarterly operating profit, prompting an upward revision of their full-year financial forecasts.
Chinese markets posted modest gains with the Hang Seng Index in Hong Kong edging up 0.1% to 26,158.21, while the Shanghai Composite rose 0.3% to 4,095.33. This upward momentum coincided with the release of official data indicating China’s inflation rate accelerated in December at its fastest pace in nearly three years, signaling strengthening domestic demand that typically exerts upward pressure on consumer prices.
In a notable market debut, Chinese artificial intelligence firm MiniMax experienced a spectacular initial public offering on the Hong Kong Stock Exchange, with shares surging more than 50% during early trading sessions, highlighting robust investor appetite for technology innovations.
Meanwhile, Australia’s S&P/ASX 200 bucked the regional trend, dipping marginally by less than 0.1% to 8,715.60. This slight decline was largely attributed to a significant 6% drop in Rio Tinto shares following the mining giant’s confirmation of preliminary merger discussions with Glencore. A potential consolidation between these industry behemoths could potentially create the world’s largest mining conglomerate.
Other regional indices including South Korea’s Kospi and Taiwan’s Taiex posted gains of 0.7% and 0.3% respectively, contributing to the overall positive Asian market performance.
Market participants maintained heightened attention toward impending U.S. economic indicators, particularly the Labor Department’s December jobs report scheduled for release. Additionally, investors awaited a potential Supreme Court ruling on former President Trump’s proposed ‘Liberation Day’ tariffs, which could substantially influence market sentiment.
The previous trading session on Wall Street witnessed significant rallies within the defense sector following statements from former President Trump advocating for increased military spending, potentially reaching $1.5 trillion by 2027. Major defense contractors including L3Harris Technologies, Lockheed Martin, and Northrop Grumman recorded substantial gains of 5.2%, 4.3%, and 2.4% respectively.
In commodity markets, oil prices experienced upward movement amid ongoing supply concerns following geopolitical developments in Venezuela. Benchmark U.S. crude rose by 35 cents to $58.11 per barrel, while international standard Brent crude gained 38 cents to $62.37. These price increases occurred against a backdrop of continued U.S. efforts to assert control over Venezuela’s substantial oil resources, including recent seizures of tankers attempting to evade sanctions.
Currency markets saw the U.S. dollar strengthen against the Japanese yen, rising to 157.27 yen, while the euro experienced a slight decline against the dollar to $1.1656.