Asian Daily Market Review

Asian market closed mixed following overnight gains on Wall Street that sent the S&P 500 and Nasdaq both to new record levels. Markets in Japan and Australia also hit their own new record highs as investors are betting on lower interest rates coming. The latest optimism was sparked by U.S. PCE inflation data for January, which showed easing inflation and bolstered hopes for a June interest rate cut.

Japan’s Nikkei outperformed the region, rising by 1.9% to a new all-time high. Shares of Softbank Group added 1.3%, while Sony shares jumped 2.1% higher. Among the major exporters Toyota was up by 1.6%, Panasonic rose by 3.2%, and Canon saw a more modest 0.2% gain.

In Australia the S&P/ASX 200 also hit a new all-time high, rising by 0.6% as investors are confident that the Royal Bank of Australia is done raising interest rates. The big four banks showed strength as ANZ added 1.1%, NAB rose 0.6%, Commonwealth Bank tacked on 0.8%, and Westpac edged up by 0.2%. The major miners performed even better, with BHP adding 2.3% and Rio Tinto advancing by 0.9%.

Mainland Chinese markets extended their gains even as PMI data showed the Chinese economy remained muted in February. The benchmark Shanghai Composite advanced by 0.4%, while the smaller cap Shenzhen Composite rose by 1.1%. In Hong Kong the Hang Seng reversed losses from the prior session as it gained 0.5% for the session.

In South Korea the Kospi fell by 0.4%, and in Taiwan the Taiex eased lower by 0.2%.

Southeast Asian markets also fell, with Malaysia’s KLCI recording a 0.9% loss and Singapore’s Straits Times Index losing a modest 0.2%.