Sell-off In Software Services Providers Dampened Broader Indexes In Japan

Japan's stocks gyrated ahead of the lower house elections this weekend, and investors reviewed geopolitical tensions.  

The Nikkei 225 Stock Average decreased 1%, the broader Topix edged up 0.2%, and the yen weakened 0.3% to 156.34 against the U.S. dollar.

Investors sold tech stocks, reacting to a tech sell-off in overnight trading in New York amid growing concerns that Anthropic's newly released AI automation tool could hurt software services providers.

After this weekend's lower house election, many expect the ruling LDP party to increase its seat count. 

Prime Minister Sanae Takaichi's administration is likely to pursue expansionary fiscal policies, which could support higher stock prices but dent the yen. 

Crude oil prices advanced after the U.S. military said it shot down an Iranian drone approaching the U.S. aircraft carrier in the Middle East region. 

The U.S. is widely believed to be preparing for another round of air strikes targeting Iran's nuclear installations, and military analysts are anticipating attacks as early as this month.

Software firms in Japan and Asia dropped sharply amid worries that the AI tools could disrupt future growth and trim profit margins. 

TIS Inc. dropped 15% to ¥3,723.0, Trend Micro fell 7.2% to ¥5,661.0, and NS Solutions decreased 7.1% to ¥3,998.0. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 1% to 54,186.15, and the broader Topix Index edged up 0.2% to 3,652.07. 

Semiconductor equipment makers and AI-related stocks decreased sharply amid worries about future growth. 

Tokyo Electron dropped 2% to ¥40,750.0, Advantest Corp. declined 3.2% to ¥25,190.0, and Lasertec fell 7.4% to ¥29,845.0. 

China Stocks Edged Down Amid worries of Higher VAT on Tech Services

China stocks traded down, and the possible increase in sales tax covering a wider group of services weighed on the market sentiment. 

The Hang Seng Index decreased 0.4%, and the mainland-focused CSI 300 Index inched lower 0.2% as investors turned cautious amid rising tensions in the Middle East.  

The latest increase in VAT for wireless telecom services weighed on the market sentiment, and investors feared that the government may increase taxes on digital services, including internet access.  

Tensions rose in the Middle East after the U.S. military said it shot down an Iranian drone approaching the U.S. aircraft carrier in the region. 

The U.S. is widely believed to be preparing for another round of air strikes targeting Iran's nuclear installations, and military analysts are anticipating attacks as early as this month.

China Indexes and Stocks 

The Hang Seng Index decreased 0.4% to 26,724.50, and the mainland-focused CSI 300 Index declined 0.2% to 4,653.32. 

Gold and silver prices recovered 3% and extended two-day gains to above 7%, and precious metals last week dropped a historic 10% in Friday's trading. 

Zijin Mining Group decreased 0.1% to HK $41.32, and Zijin Gold International dropped 0.4% to HK $216.40. 

Crude oil prices rebounded 0.8% to $63.73 a barrel amid rising tensions in the Middle East. 

CNOOC gained 1.5% to HK $23.72, China Petroleum and Chemical increased 1.3% to HK $5.40, and PetroChina increased 1.1% to HK $9.07. 

China Stocks Edged Down Amid worries of Higher VAT on Tech Services

China stocks traded down, and the possible increase in sales tax covering a wider group of services weighed on the market sentiment. 

The Hang Seng Index decreased 0.4%, and the mainland-focused CSI 300 Index inched lower 0.2% as investors turned cautious amid rising tensions in the Middle East.  

The latest increase in VAT for wireless telecom services weighed on the market sentiment, and investors feared that the government may increase taxes on digital services, including internet access.  

Tensions rose in the Middle East after the U.S. military said it shot down an Iranian drone approaching the U.S. aircraft carrier in the region. 

The U.S. is widely believed to be preparing for another round of air strikes targeting Iran's nuclear installations, and military analysts are anticipating attacks as early as this month.

China Indexes and Stocks 

The Hang Seng Index decreased 0.4% to 26,724.50, and the mainland-focused CSI 300 Index declined 0.2% to 4,653.32. 

Gold and silver prices recovered 3% and extended two-day gains to above 7%, and precious metals last week dropped a historic 10% in Friday's trading. 

Zijin Mining Group decreased 0.1% to HK $41.32, and Zijin Gold International dropped 0.4% to HK $216.40. 

Crude oil prices rebounded 0.8% to $63.73 a barrel amid rising tensions in the Middle East. 

CNOOC gained 1.5% to HK $23.72, China Petroleum and Chemical increased 1.3% to HK $5.40, and PetroChina increased 1.1% to HK $9.07. 

Strong Earnings Results and Easing Geopolitical Tensions Lifted U.S. indexes Higher

U.S. stock indexes advanced for the second consecutive session this week amid earnings optimism and receding geopolitical tensions. 

The S&P 500 Index increased 0.5%, and the tech-focused Nasdaq Composite advanced 0.9% as investors reacted to quarterly results of PepsiCo, NXP Semiconductors, Teradyne, and Palantir Technologies. 

Market sentiment was further bolstered after the U.S. president lowered tariffs on India's goods to 18% from 50% and waived the additional 25% tariff imposed last year. 

Trump backed down from high tariffs from China, Japan, the European Union, Canada, and Mexico, confirming the term "Trump Always Chickens Out" after several tariff threats and reversals in 2025.

Immediate-month delivery futures prices of gold rebounded 5.1% to $308.0, and silver surged 8.2% to $308.0, and precious metals plunged between 20% and 30% over the last two trading sessions. 

U.S. Movers 

Palantir Technologies jumped 10.9% to $163.85 after the defense and intelligence contractor reported higher-than-estimated revenue and earnings in its latest quarter. 

The company reported revenues of $1.4 billion and adjusted earnings per share of 25 cents, surpassing market expectations. 

NXP Semiconductors decreased 5% to $219.48 despite the company reporting better-than-expected quarterly results. The advanced semiconductor company's guidance for the adjusted gross margin in the current quarter of 57% overshadows its results. 

Teradyne jumped 23% to $308.0 after the robotics company's current quarter was ahead of market expectations. 

The task automation and electronic testing company estimated revenue between $1.15 billion and $1.25 billion, and the company reported fourth-quarter revenue of $1.1 billion and adjusted earnings per share of $1.80.  

U.S. Indexes Pulled Ahead Powered by Strong Earnings Results and Easing Geopolitical Tensions

U.S. stock indexes advanced for the second consecutive session this week amid earnings optimism and receding geopolitical tensions. 

The S&P 500 Index increased 0.5%, and the tech-focused Nasdaq Composite advanced 0.9% as investors reacted to quarterly results of PepsiCo, NXP Semiconductors, Teradyne, and Palantir Technologies. 

Market sentiment was further bolstered after the U.S. president lowered tariffs on India's goods to 18% from 50% and waived the additional 25% tariff imposed last year. 

Trump backed down from high tariffs from China, Japan, the European Union, Canada, and Mexico, confirming the term "Trump Always Chickens Out" after several tariff threats and reversals in 2025.

Immediate-month delivery futures prices of gold rebounded 5.1% to $308.0, and silver surged 8.2% to $308.0, and precious metals plunged between 20% and 30% over the last two trading sessions. 

U.S. Movers 

Palantir Technologies jumped 10.9% to $163.85 after the defense and intelligence contractor reported higher-than-estimated revenue and earnings in its latest quarter. 

The company reported revenues of $1.4 billion and adjusted earnings per share of 25 cents, surpassing market expectations. 

NXP Semiconductors decreased 5% to $219.48 despite the company reporting better-than-expected quarterly results. The advanced semiconductor company's guidance for the adjusted gross margin in the current quarter of 57% overshadows its results. 

Teradyne jumped 23% to $308.0 after the robotics company's current quarter was ahead of market expectations. 

The task automation and electronic testing company estimated revenue between $1.15 billion and $1.25 billion, and the company reported fourth-quarter revenue of $1.1 billion and adjusted earnings per share of $1.80.  

Japan's Nikkei 225 Rebounded 4%, Yen Remained Under Pressure

Stocks in Tokyo recovered sharply after the sell-off in precious metals abated and geopolitical tensions eased. 

The Nikkei 225 Stock Average soared nearly 4%, the broader Topix Index gained 3%, and the yen hovered at 155.40 against the U.S. dollar. 

Japan's market sentiment was driven by the optimism that the ruling party coalition is likely to return to power with a comfortable majority, which could pave a way for the more expansionary fiscal policy. 

Japan's snap election of the Lower House is scheduled on February 15, and the Prime Minister Sanae Takaichi's popularity is likely to help expand her party's seat count. 

Moreover, a stable yen is likely to support earnings growth in the fiscal year 2026. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average soared 3.9% to 54,720.29, and the broader Topix Index gained 3.1% to 3,646.12. 

AI-related stocks rebounded, tracking gains in technology stocks in overnight trading in New York. 

Kioxia Holdings soared 13% to ¥20,785.0, Fujikura Ltd. soared 9.7% to ¥21,780.0, and Softbank Group Corp. advanced 5.2% to ¥4,300.0. 

Tokyo Electron rose 4.3% to ¥41,560.0, Advantest Corp. gained 4.2% to ¥26,030.0, and Disco Corp. 7.4% to ¥66,920.0. 

Japan's Nikkei 225 Rebounded, Yen Remained Under P

Stocks in Tokyo recovered sharply after the sell-off in precious metals abated and geopolitical tensions eased. 

The Nikkei 225 Stock Average soared nearly 4%, the broader Topix Index gained 3%, and the yen hovered at 155.40 against the U.S. dollar. 

Japan's market sentiment was driven by the optimism that the ruling party coalition is likely to return to power with a comfortable majority, which could pave a way for the more expansionary fiscal policy. 

Japan's snap election of the Lower House is scheduled on February 15, and the Prime Minister Sanae Takaichi's popularity is likely to help expand her party's seat count. 

Moreover, a stable yen is likely to support earnings growth in the fiscal year 2026. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average soared 3.9% to 54,720.29, and the broader Topix Index gained 3.1% to 3,646.12. 

AI-related stocks rebounded, tracking gains in technology stocks in overnight trading in New York. 

Kioxia Holdings soared 13% to ¥20,785.0, Fujikura Ltd. soared 9.7% to ¥21,780.0, and Softbank Group Corp. advanced 5.2% to ¥4,300.0. 

Tokyo Electron rose 4.3% to ¥41,560.0, Advantest Corp. gained 4.2% to ¥26,030.0, and Disco Corp. 7.4% to ¥66,920.0. 

China Stocks Rebounded After Risk Sentiment Stabilized

Stocks in China advanced amid easing geopolitical tensions and stabilizing market sentiment. 

The Hang Seng Index increased 0.2%, and the mainland-focused CSI 300 Index inched higher 0.1% as investors searched for bargains. 

Global market sentiment recovered after the U.S. president lowered goods tariffs to 18% from as high as 50% as India agreed to halt direct sourcing of crude oil from Russia. 

Precious metals prices recovered and halted a three-day slide that saw gold prices down as much as 20% and silver prices falling over 30%.  

China Indexes and Stocks 

The Hang Seng Index increased 0.2% to 26,830.23, and the CSI 300 Index advanced 0.1% to 4,609.71. 

Technology and resource stocks experienced a recovery in Shanghai and Hong Kong trading ahead of the earnings announcement.

Zijin Mining Group increased 2% to HK $40.36, and Zijin Gold International increased 3.5% to HK $208.40. 

Trip.com Group advanced 1.2% to HK $483.60, NetEase gained 0.2% to HK $204.30, and Alibaba Group fell 1.8% to HK $160.40. 

Eastroc Beverage Group traded flat at HK $248.0 after the energy drink maker priced its initial public offering at HK $248 per share. 

The company raised HK $10.4 billion in gross proceeds through the sale of 40.9 million shares. 

Shimeng Supply Chain Management soared more than 122% to 62.88 yuan in Shenzhen trading after the company priced its initial public offering. 

China Stocks Rebounded After Risk Sentiment Stabilized

Stocks in China advanced amid easing geopolitical tensions and stabilizing market sentiment. 

The Hang Seng Index increased 0.2%, and the mainland-focused CSI 300 Index inched higher 0.1% as investors searched for bargains. 

Global market sentiment recovered after the U.S. president lowered goods tariffs to 18% from as high as 50% as India agreed to halt direct sourcing of crude oil from Russia. 

Precious metals prices recovered and halted a three-day slide that saw gold prices down as much as 20% and silver prices falling over 30%.  

China Indexes and Stocks 

The Hang Seng Index increased 0.2% to 26,830.23, and the CSI 300 Index advanced 0.1% to 4,609.71. 

Technology and resource stocks experienced a recovery in Shanghai and Hong Kong trading ahead of the earnings announcement.

Zijin Mining Group increased 2% to HK $40.36, and Zijin Gold International increased 3.5% to HK $208.40. 

Trip.com Group advanced 1.2% to HK $483.60, NetEase gained 0.2% to HK $204.30, and Alibaba Group fell 1.8% to HK $160.40. 

Eastroc Beverage Group traded flat at HK $248.0 after the energy drink maker priced its initial public offering at HK $248 per share. 

The company raised HK $10.4 billion in gross proceeds through the sale of 40.9 million shares. 

Shimeng Supply Chain Management soared more than 122% to 62.88 yuan in Shenzhen trading after the company priced its initial public offering. 

Sharp Declines In Oil and Metals Shadowed Wall Street Trading

Wall Street indexes turned sharply lower on Monday as investors geared up for another batch of earnings this week. 

The S&P 500 index decreased 0.3%, and the tech-heavy Nasdaq Composite fell 1% amid earnings jitters and a weakness in precious metals and crude oil prices. 

Last week, global investors reacted to local earnings results, metals advanced amid persistent dollar weakness, and crude oil jumped ahead of a possible U.S. airstrike targeting Iran.

World markets traded higher as earnings releases gathered momentum, and investors overlooked elevated geopolitical tensions.

Sell America and Dollar Debase trades drove global investors to markets in Asia and Europe and accelerated shifts to metals.

The dollar index, which tracks the U.S. dollar against the basket of leading currencies, decreased 2% in January and powered a 17% surge in gold, a 40% rise in silver, and a 6% advance in copper.  

But those fears receded Monday after the U.S. president and Iran signaled the resumption of talks. 

Moreover, Trump's appointment of Kevin Warsh as the next Federal Reserve chair, a perceived fiscal hawk, also dragged down gold and silver prices for the second consecutive session. 

Gold extended a two-day decline to 12% and fell to $4,685 an ounce, and silver plunged nearly 30% over the last two trading sessions to $80.87 an ounce.  

Crude oil prices for immediate-month delivery decreased 4.5% to $61.92 a barrel as investors hoped that the ongoing talks between the US and Iran could avert a global supply disruption through the Strait of Hormuz.

More than 160 companies are slated to release their quarterly results this week, including AMD, Amazon, Alphabet, Disney, NXP Semiconductors, Simon Property, and Uber Technologies.

On the economic front, January's nonfarm payrolls are scheduled to be released on Friday, and economists are estimating a preliminary increase of 40,000. 

Sharp Declines In Oil and Metals Shadowed Wall Street Trading

Wall Street indexes turned sharply lower on Monday as investors geared up for another batch of earnings this week. 

The S&P 500 index decreased 0.3%, and the tech-heavy Nasdaq Composite fell 1% amid earnings jitters and a weakness in precious metals and crude oil prices. 

Last week, global investors reacted to local earnings results, metals advanced amid persistent dollar weakness, and crude oil jumped ahead of a possible U.S. airstrike targeting Iran.

World markets traded higher as earnings releases gathered momentum, and investors overlooked elevated geopolitical tensions.

Sell America and Dollar Debase trades drove global investors to markets in Asia and Europe and accelerated shifts to metals.

The dollar index, which tracks the U.S. dollar against the basket of leading currencies, decreased 2% in January and powered a 17% surge in gold, a 40% rise in silver, and a 6% advance in copper.  

But those fears receded Monday after the U.S. president and Iran signaled the resumption of talks. 

Moreover, Trump's appointment of Kevin Warsh as the next Federal Reserve chair, a perceived fiscal hawk, also dragged down gold and silver prices for the second consecutive session. 

Gold extended a two-day decline to 12% and fell to $4,685 an ounce, and silver plunged nearly 30% over the last two trading sessions to $80.87 an ounce.  

Crude oil prices for immediate-month delivery decreased 4.5% to $61.92 a barrel as investors hoped that the ongoing talks between the US and Iran could avert a global supply disruption through the Strait of Hormuz.

More than 160 companies are slated to release their quarterly results this week, including AMD, Amazon, Alphabet, Disney, NXP Semiconductors, Simon Property, and Uber Technologies.

On the economic front, January's nonfarm payrolls are scheduled to be released on Friday, and economists are estimating a preliminary increase of 40,000. 

Weak Mining and Telecom Stocks Dragged Down China Stocks Lower

Stocks in China turned lower, and investors reacted to corporate earnings and took additional profit in precious metals.

The Hang Seng Index decreased 2.4%, and the CSI 300 Index fell 1% amid lowered profit expectations. 

Last week, world markets advanced ahead of a flood of corporate results and steady foreign fund flows in Asia and emerging markets. 

However, market sentiment turned cautious amid growing earnings anxieties and reduced appetite for precious metals after the Shanghai Gold Exchange increased margin requirements and revised daily price limits for silver futures contracts. 

China Indexes and Stocks 

The Hang Seng Index decreased 2.4% to 26,730.78, and the CSI 300 Index declined 1% to 4,656.16. 

In metals trading, gold decreased 5.4% to $4652.0 an ounce, and silver decreased 10.9% to $75.91 an ounce.  

Zijin Mining Group declined 5% to HK $39.18, and Zijin Gold International dropped 6.2% to HK $205.0. 

BYD declined 8.2% to HK $80.0 after the electric vehicle maker reported a 30% decline in sales in January. 

Wireless telecom service providers slumped after the telecom authority raised the value-added tax to 9% from the current 6%. 

China Unicom dropped 8.2% to HK $7.30, and China Telecom fell 6.1% to HK $5.01. 

Weak Mining and Telecom Stocks Dragged Down China Stocks Lower

Stocks in China turned lower, and investors reacted to corporate earnings and took additional profit in precious metals.

The Hang Seng Index decreased 2.4%, and the CSI 300 Index fell 1% amid lowered profit expectations. 

Last week, world markets advanced ahead of a flood of corporate results and steady foreign fund flows in Asia and emerging markets. 

However, market sentiment turned cautious amid growing earnings anxieties and reduced appetite for precious metals after the Shanghai Gold Exchange increased margin requirements and revised daily price limits for silver futures contracts. 

China Indexes and Stocks 

The Hang Seng Index decreased 2.4% to 26,730.78, and the CSI 300 Index declined 1% to 4,656.16. 

In metals trading, gold decreased 5.4% to $4652.0 an ounce, and silver decreased 10.9% to $75.91 an ounce.  

Zijin Mining Group declined 5% to HK $39.18, and Zijin Gold International dropped 6.2% to HK $205.0. 

BYD declined 8.2% to HK $80.0 after the electric vehicle maker reported a 30% decline in sales in January. 

Wireless telecom service providers slumped after the telecom authority raised the value-added tax to 9% from the current 6%. 

China Unicom dropped 8.2% to HK $7.30, and China Telecom fell 6.1% to HK $5.01.