Post by : Badri Ariffin

Asian stock markets welcomed the new year with optimism on Friday, fueled by a notable rally in technology shares. The Hang Seng index in Hong Kong surged by 2.2%, closing at 26,189.79, propelled by major advancements in both e-commerce and tech firms.

Alibaba's shares rose 3.2%, and Baidu saw a significant jump of 7.5%. Baidu's impressive increase followed news of its plans to spin off its artificial intelligence chip division, Kunlunxin, which is set to be listed in Hong Kong by early 2027, pending regulatory clearance.

Notably, key markets in Tokyo, Shanghai, Thailand, and New Zealand remained closed.

In South Korea, the Kospi index advanced 1.5% to 4,277.94. Australia's S&P/ASX 200 edged up by 0.2% to 8,727.30, and Taiwan’s Taiex climbed by 1.1%, while India’s Sensex added a modest 0.1%.

This tech rally signifies increasing expectations that AI will boost the demand for computer chips and the necessary infrastructure for data centers, promoting growth in the Asian tech landscape.

Despite recent weaker manufacturing figures in the region, trade volumes have shown resilience. Analyst Shivaan Tandon from Capital Economics observed a recent surge in exports, suggesting a positive outlook for Asia’s export-driven manufacturing sectors.

U.S. Futures and Commodities Experience Upward Movement

U.S. stock futures commenced Friday on a positive note, with S&P 500 futures increasing by 0.5% and Dow Jones Industrial Average futures up by 0.3%, indicating a strong start to the year.

During the last trading day of 2025, U.S. stocks faced some losses despite overall positive performance throughout the year. The S&P 500 slipped by 0.7% to end at 6,845.50, the Dow fell 0.6% to 48,063.29, and the Nasdaq dropped 0.8% to 23,241.99.

In 2025, the S&P 500 experienced 39 record-breaking highs and concluded the year up by 16.4%. The Nasdaq gained 20.4%, while the Dow finished with a 13% rise. This growth was largely driven by investor optimism revolving around AI’s potential to enhance corporate profits across various sectors.

Wall Street's performance in 2025 was bolstered by easing trade tensions, including a pause on tariffs by President Donald Trump and renewed trade discussions, alongside strong corporate earnings and three rate cuts by the Federal Reserve.

The Fed is expected to maintain current interest rates in the upcoming January meeting.

Labor Department data indicated a slight drop in new unemployment claims last week, reflecting consistent layoffs in a weakening labor environment.

Commodity Trends and Sector Performance

On Wednesday, all sectors of the S&P 500 concluded lower, primarily driven by declines in technology stocks. Western Digital dropped 2.2%, while Micron Technology fell by 2.5%, despite being key winners in the index for 2025.

In commodities, silver rebounded significantly, gaining 3.5% after a sharp dip early in the week. It rose more than 140% throughout the year. Gold also saw an increase of 1.1%, finishing 2025 with a remarkable 63.7% gain.

U.S. benchmark crude oil rose by 35 cents to $57.77 per barrel, and Brent crude also increased by 35 cents to $61.20 per barrel.

In currency markets, the U.S. dollar saw a slight increase against the Japanese yen, moving from 156.75 to 156.80 yen, while the euro edged up to $1.1760 from $1.1746.

#Global News #Business News #Asia News