Hong Kong Markets Lead Asia’s Gains as Nikkei 225 Hits Fresh 34-Year High
In a positive turn of events, Hong Kong markets led the gains in Asia on Friday, with Japan’s Nikkei 225 hitting a fresh 34-year high as it attempted to scale its all-time peak. The Nikkei index came close to reaching its record high, with an intraday high of 38,863.69, falling less than 100 points short. Despite giving up some of its earlier gains, the index still ended 0.86% higher at 38,487.24.
This surge in the Nikkei index comes at a time when Japan has lost its spot as the third-largest global economy to Germany and reported a technical recession. The economic slowdown in Japan has raised hopes that the country may stick with its ultra-loose monetary policy for a longer period. However, concerns have been raised by the country’s finance minister regarding the weakness of the yen.
Other Asia-Pacific markets also experienced gains on Friday, following the positive performance of Wall Street. The S&P 500, in particular, reached a fresh record high. Hong Kong’s Hang Seng index climbed 2.41%, while mainland Chinese markets remained closed for the Lunar New Year holidays. In Australia, the S&P/ASX 200 rose 0.69% to close at 7,658.3, and South Korea’s Kospi climbed 1.27% to end at 2,624.73.
Investors are eagerly awaiting the release of Singapore’s 2024 budget later in the day. This announcement is expected to provide insights into the country’s economic plans and potential investment opportunities.
The positive momentum in Asian markets can be attributed to the overnight performance of the US markets. All three major indexes in the US ended the trading session in positive territory after recovering from steep losses earlier in the week. The S&P 500 climbed 0.58% to close at a new record high of 5,029.73, while the Nasdaq Composite added 0.30% to close at 15,906.17. The Dow Jones Industrial Average also traded higher, ending at 38,773.12, a gain of 348.85 points or 0.91%.
Overall, the Asian markets are displaying resilience and optimism despite the challenges faced by Japan’s economy. The positive performance of Hong Kong and the Nikkei index, along with the gains in other Asia-Pacific markets, indicate a potential recovery and renewed investor confidence in the region.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any other agency, organization, employer, or company.