Asian markets were quiet with the Lunar New Year holiday approaching and Japan reporting weak economic growth, while gold prices eased.
HONG KONG: Asian markets traded in a narrow range on Monday as the extended Lunar New Year holiday period approached. Trading floors were closed in mainland China, Seoul and Taipei, while Hong Kong and Singapore operated on a half-day schedule.
The subdued mood was compounded by lacklustre economic growth data from Japan. The world’s fourth-largest economy expanded just 0.1% in the final quarter of 2025, missing market forecasts of 0.4%.
The figures add pressure on Prime Minister Sanae Takaichi, who made boosting growth a key pledge ahead of her landslide election victory. Marcel Thieliant of Capital Economics noted the weak data “implies that the large supplementary budget passed at the end of November provided no boost to public spending last quarter just yet.”
He added that “sluggish economic activity increases the chances that Takaichi will not only press ahead with suspending the sales tax on food but enact a supplementary budget during the first half of the fiscal year.” Tokyo’s Nikkei 225 index was down 0.03% in early trading.
Markets in Wellington, Singapore, Jakarta, Bangkok, Manila, Kuala Lumpur and Mumbai also posted minimal losses. Hong Kong’s Hang Seng Index was a rare gainer, up 0.4%.
The session followed a period of stabilisation after a tech-led plunge last week. That sell-off was driven by growing concern over the vast sums spent on artificial intelligence infrastructure and uncertainty over future returns.
Investor focus will remain on AI this week as the five-day AI Impact Summit begins in New Delhi. The event will feature industry leaders including OpenAI’s Sam Altman and Google’s Sundar Pichai.
A sense of calm persisted from Friday, when US data showed consumer inflation cooling slightly more than expected in January. Annual core inflation fell to 2.4%, its lowest level since March 2021.
Analysts say the figure allows the Federal Reserve to consider further interest rate cuts later this year. “US inflation data was good. And the initial response in equities reflected that. But the devil was in the details,” said Kyle Rodda, senior market analyst at Capital.com.
In commodity markets, gold edged lower after its recent climb. The precious metal decreased 0.8% to just above $5,000 an ounce, while silver fell 1.8%.
“Markets have priced in a higher probability of deeper Fed rate cuts this year, driving real yields lower and supporting gold demand,” Standard Chartered said in a note. US stock markets were closed on Monday for the Presidents’ Day holiday.
The Sun Malaysia
