Japan's Producer Price Holds Steady In December, Yen Rebounds to One-Month High On Rate Path Speculation

Stocks in Tokyo advanced in early trading, reflecting gains in overnight trading in New York, but the market rally fizzled towards the end of the session. 

The Nikkei 225 stock average gained 0.1%, and the broader TOPIX edged down a fraction at close. 

Benchmark indexes in Tokyo opened higher after the U.S. monthly core rate of inflation declined in December, the first decrease in six months. 

Investors bid up stocks on speculation that the stubborn inflationary forces are finally weakening, which could help the U.S. Federal Reserve to deliver additional rate cuts in 2025. 

Wall Street enthusiasm was also fueled by strong earnings from Goldman Sachs, JPMorgan Chase, BlackRock, Wells Fargo, and Citigroup. 

Closer to home, Japan's annual producer price inflation held steady at 3.8% in December, matching the rate in the previous month, supporting the case for the Bank of Japan to delay its next rate hike after the March meeting. 

Japan Stock Movers

The Nikkei 225 Stock Average increased 0.1% to 38,478.15, and the broader TOPIX declined 0.01%. 

The yen edged higher to 156.05 against the U.S. dollar as investors debated the Bank of Japan's next move. 

Sumitomo Mitsui Financial Group edged higher 0.2% to ¥3,807.0, Mitsubishi UFJ Financial Group fell 0.2% to ¥1,889.0, and Mizuho Financial Group decreased 0.2% to ¥3,971.0. 

Shipping companies were in focus for the second day in a row after the U.S. placed new and stricter sanctions on Russian shipping companies and blacklisted several Chinese shipping companies. 

Nippon Yusen decreased 1.2% to ¥4,802.0, Mitsui OSK Lines Ltd. fell 3% to ¥5,129.0, and Kawasaki Kisen Kaisha Ltd. declined 3.2% to ¥1,991.50. 

Seven & I Holdings increased 1% to ¥2,469.50, and Takashimaya Co. Ltd. rose 0.6% to ¥1,238.0, and J Front Retailing edged up 0.01% to ¥1,988.0, and Fast Retailing advanced 0.2% to ¥48,440.0. 

Hong Kong Stocks Rebound On Rate Path Speculation Ahead of China's Fourth Quarter GDP Data

Benchmark indexes in China and Hong Kong traded higher, mirroring their peers following a surge on Wall Street in overnight trading in New York. 

The Hang Seng index increased 0.9%, and the mainland-focused CSI 300 index advanced a fraction, reflecting the strength in the U.S. stocks. 

Market indexes in Hong Kong soared in the hopes that the U.S. inflation will continue to slide after December's monthly core rate of inflation declined for the first time in six months. 

The monthly core inflation rate decreased 0.2%, and the annual rate eased to 3.2% from 3.5% in the previous month. 

However, the overall consumer price inflation accelerated for the third month in a row to 2.9% amid a rise in energy prices and the sustained increase in housing costs. 

Despite the elevated inflation, investors focused on the decrease in the monthly inflation rate and bid up stock prices in New York, sparking a rally in Asian markets in Thursday's trading. 

Closer to home, investors are looking forward to the release of fourth quarter GDP growth on Friday. 

China's GDP in the fourth quarter is likely to accelerate to an annual pace of 5.0% from a 4.6% increase in the third quarter, largely driven by a raft of stimulus measures and steps to shore up the faltering property market. 

China Stock Movers 

The Hang Seng index increased 0.9% to 19,445.68, and the CSI 300 index advanced 0.02% to 3,796.80. 

China Hongqiao Group Ltd. increased 4.2% to HK $11.90 after the aluminum producer said it repurchased 5.56 million of its own shares at a total price of HK $63.3 million or $8.1 million. 

The company said it plans to cancel repurchased stocks. 

Property developers in Hong Kong advanced on speculation that mortgage rates could head lower if the U.S. Federal Reserve sticks with its rate-cut plans following the release of December's inflation report. 

Wharf Real Estate Company increased 0.9% to HK $18.76, Link Real Estate Investment Trust advanced 2% to HK $31.90, and Henderson Land Development Company fell 0.5% to HK $21.70. 

Hong Kong Stocks Rebound On Rate Path Speculation Ahead of China's Fourth Quarter GDP Data

Benchmark indexes in China and Hong Kong traded higher, mirroring their peers following a surge on Wall Street in overnight trading in New York. 

The Hang Seng index increased 0.9%, and the mainland-focused CSI 300 index advanced a fraction, reflecting the strength in the U.S. stocks. 

Market indexes in Hong Kong soared in the hopes that the U.S. inflation will continue to slide after December's monthly core rate of inflation declined for the first time in six months. 

The monthly core inflation rate decreased 0.2%, and the annual rate eased to 3.2% from 3.5% in the previous month. 

However, the overall consumer price inflation accelerated for the third month in a row to 2.9% amid a rise in energy prices and the sustained increase in housing costs. 

Despite the elevated inflation, investors focused on the decrease in the monthly inflation rate and bid up stock prices in New York, sparking a rally in Asian markets in Thursday's trading. 

Closer to home, investors are looking forward to the release of fourth quarter GDP growth on Friday. 

China's GDP in the fourth quarter is likely to accelerate to an annual pace of 5.0% from a 4.6% increase in the third quarter, largely driven by a raft of stimulus measures and steps to shore up the faltering property market. 

China Stock Movers 

The Hang Seng index increased 0.9% to 19,445.68, and the CSI 300 index advanced 0.02% to 3,796.80. 

China Hongqiao Group Ltd. increased 4.2% to HK $11.90 after the aluminum producer said it repurchased 5.56 million of its own shares at a total price of HK $63.3 million or $8.1 million. 

The company said it plans to cancel repurchased stocks. 

Property developers in Hong Kong advanced on speculation that mortgage rates could head lower if the U.S. Federal Reserve sticks with its rate-cut plans following the release of December's inflation report. 

Wharf Real Estate Company increased 0.9% to HK $18.76, Link Real Estate Investment Trust advanced 2% to HK $31.90, and Henderson Land Development Company fell 0.5% to HK $21.70. 

S&P 500 and Nasdaq Composite Jumped 1% After CPI Report and Blowout Bank Earnings

Stock market indexes rebounded in early trading after consumer price inflation met market expectations and leading financial services companies reported blowout earnings. 

The S&P 500 index increased 1.2%, and the Nasdaq Composite advanced 1.4% after investors welcomed the cooler core inflation in December. 

Consumer price inflation accelerated for the third month in a row to 2.9%, and core inflation, which excludes food and energy prices, slowed to an annual 3.2% from 3.3%, according to the monthly report released by the U.S. Bureau of Labor Statistics. 

The annual rate of inflation accelerated from 2.7% in November, largely because of an increase in energy prices from a lower base in the previous year. 

However, shelter cost continued to advance at 4.6% compared to 4.7%, food inflation accelerated to 2.5% from 2.4%, and transportation inflation advanced to 7.3% from 7.1% annual rate in the previous month. 

On the other hand, prices for used cars and trucks fell at a slower annual pace of 3.3% from 3.4%, and new vehicles eased 0.4% compared to a fall of 0.7% annual pace in the previous month. 

Wall Street indexes advanced after investors focused on the direction of core inflation and overlooked the fact that prices are still rising at a faster rate than the target rate of 2% and from a higher base set by the Federal Reserve. 

On Tuesday, the statistical agency said annual producer price inflation accelerated to 3.3% in December from 3.0% in the previous month, and the core rate of inflation advanced to 3.5%. 

Two inflation reports have been closely watched by investors after nonfarm payrolls expanded at a faster pace of 256,000 in December, confirming a strong jobs market and supporting the case for the Federal Reserve to slow or maybe even eliminate its projected rate cuts in 2025. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 1.3% to 5,918.03, the Nasdaq Composite rose 1.6% to 19,354.95, and the Russell 2000 index inched up by 1.1% to 2,219.24. 

The yield on 2-year Treasury notes edged down to 4.30%, 10-year Treasury notes inched down to 4.70%, and 30-year Treasury bonds declined to 4.92%.

WTI crude oil increased $0.62 to $78.13 a barrel, and natural gas prices edged up 4 cents to $3.99 a thermal unit.

Gold increased by $13.23 to $2,688.56 an ounce, and silver rose by $0.32 to $30.19. 

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.48 to 108.43 and traded at a two-year high. 

U.S. Stock Movers 

Citigroup Inc. jumped 4.5% to $76.79 after the financial services company reported better-than-expected quarterly results, driven by an increase in revenue in investment banking fixed-income trading. 

The bank announced a $20 billion stock buyback program. 

Goldman Sachs Group jumped 4% to 594.51 after the company reported stronger-than-expected quarterly revenue and earnings. 

The investment bank benefitted from a rebound in investment banking activities and sold income in its fixed-income trading and asset management unit. 

JPMorgan Chase increased 0.8% to $249.40 after the New York-based company reported better-than-expected net interest income, fixed income trading revenue, and investment banking fees. 

Total revenue increased 10% to $43.74 billion, driven by a surge in net interest income to $23.47 billion, fixed-income trading revenue jumped 20% to $5 billion, and investment banking fees soared 49% to $2.48 billion. 

BlackRock Inc. advanced 5% to $1,010.91 after the world's largest asset manager reported fourth-quarter earnings ahead of market expectations. 

Assets under management increased to $11.551 trillion from $11.475 trillion. 

S&P 500 and Nasdaq Composite Jumped 1% After CPI Report and Blowout Bank Earnings

Stock market indexes rebounded in early trading after consumer price inflation met market expectations and leading financial services companies reported blowout earnings. 

The S&P 500 index increased 1.2%, and the Nasdaq Composite advanced 1.4% after investors welcomed the cooler core inflation in December. 

Consumer price inflation accelerated for the third month in a row to 2.9%, and core inflation, which excludes food and energy prices, slowed to an annual 3.2% from 3.3%, according to the monthly report released by the U.S. Bureau of Labor Statistics. 

The annual rate of inflation accelerated from 2.7% in November, largely because of an increase in energy prices from a lower base in the previous year. 

However, shelter cost continued to advance at 4.6% compared to 4.7%, food inflation accelerated to 2.5% from 2.4%, and transportation inflation advanced to 7.3% from 7.1% annual rate in the previous month. 

On the other hand, prices for used cars and trucks fell at a slower annual pace of 3.3% from 3.4%, and new vehicles eased 0.4% compared to a fall of 0.7% annual pace in the previous month. 

Wall Street indexes advanced after investors focused on the direction of core inflation and overlooked the fact that prices are still rising at a faster rate than the target rate of 2% and from a higher base set by the Federal Reserve. 

On Tuesday, the statistical agency said annual producer price inflation accelerated to 3.3% in December from 3.0% in the previous month, and the core rate of inflation advanced to 3.5%. 

Two inflation reports have been closely watched by investors after nonfarm payrolls expanded at a faster pace of 256,000 in December, confirming a strong jobs market and supporting the case for the Federal Reserve to slow or maybe even eliminate its projected rate cuts in 2025. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 1.3% to 5,918.03, the Nasdaq Composite rose 1.6% to 19,354.95, and the Russell 2000 index inched up by 1.1% to 2,219.24. 

The yield on 2-year Treasury notes edged down to 4.30%, 10-year Treasury notes inched down to 4.70%, and 30-year Treasury bonds declined to 4.92%.

WTI crude oil increased $0.62 to $78.13 a barrel, and natural gas prices edged up 4 cents to $3.99 a thermal unit.

Gold increased by $13.23 to $2,688.56 an ounce, and silver rose by $0.32 to $30.19. 

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.48 to 108.43 and traded at a two-year high. 

U.S. Stock Movers 

Citigroup Inc. jumped 4.5% to $76.79 after the financial services company reported better-than-expected quarterly results, driven by an increase in revenue in investment banking fixed-income trading. 

The bank announced a $20 billion stock buyback program. 

Goldman Sachs Group jumped 4% to 594.51 after the company reported stronger-than-expected quarterly revenue and earnings. 

The investment bank benefitted from a rebound in investment banking activities and sold income in its fixed-income trading and asset management unit. 

JPMorgan Chase increased 0.8% to $249.40 after the New York-based company reported better-than-expected net interest income, fixed income trading revenue, and investment banking fees. 

Total revenue increased 10% to $43.74 billion, driven by a surge in net interest income to $23.47 billion, fixed-income trading revenue jumped 20% to $5 billion, and investment banking fees soared 49% to $2.48 billion. 

BlackRock Inc. advanced 5% to $1,010.91 after the world's largest asset manager reported fourth-quarter earnings ahead of market expectations. 

Assets under management increased to $11.551 trillion from $11.475 trillion. 

Europe Movers: Hays, Nordex, Serco

Stock market indexes in Europe rebounded and bond yields halted increase after consumer price inflation in the U.K. unexpectedly slowed. 

Germany's GDP contracted for the second year in a row in 2024. 

The DAX index increased by 0.5% to 20,366; the CAC-40 index rose by 0.4% to 7,425.41; and the FTSE 100 index inched higher by 0.7% to 8,254.24.

The yield on 10-year German bonds edged higher to 2.60%, French bonds rose to 3.44%, the UK gilts increased to 4.81%, and Italian bonds edged lower to 3.80%.

Hays PLC advanced 2.8% to 74.45 pence despite the recruitment services provider reporting a decline in revenue in the latest quarter. 

Serco plc increased 1.6% to 149.40 pence after the company won a $247 million contract to provide holistic health and fitness services to 45 U.S. Army brigades spread over 15 locations in the U.S. 

The company recently won a $193 million award from the U.S. Army for transition and counseling services for veterans, a $97 million new five-year contract for program management and support to the Naval Sea Systems Command, and a $33 million contract renewal to provide psychological health outreach support for the US Navy Bureau of Medicine and Surgery. 

Nordex SE increased 3.4% to €12.23 after the German wind turbine maker announced a significant increase in new order flow in 2024. 

New orders increased to 8.34 GW from 7.36 GW in 2023, driven by new customers in Brazil and Europe. 

Europe Movers: Hays, Nordex, Serco

Stock market indexes in Europe rebounded and bond yields halted increase after consumer price inflation in the U.K. unexpectedly slowed. 

Germany's GDP contracted for the second year in a row in 2024. 

The DAX index increased by 0.5% to 20,366; the CAC-40 index rose by 0.4% to 7,425.41; and the FTSE 100 index inched higher by 0.7% to 8,254.24.

The yield on 10-year German bonds edged higher to 2.60%, French bonds rose to 3.44%, the UK gilts increased to 4.81%, and Italian bonds edged lower to 3.80%.

Hays PLC advanced 2.8% to 74.45 pence despite the recruitment services provider reporting a decline in revenue in the latest quarter. 

Serco plc increased 1.6% to 149.40 pence after the company won a $247 million contract to provide holistic health and fitness services to 45 U.S. Army brigades spread over 15 locations in the U.S. 

The company recently won a $193 million award from the U.S. Army for transition and counseling services for veterans, a $97 million new five-year contract for program management and support to the Naval Sea Systems Command, and a $33 million contract renewal to provide psychological health outreach support for the US Navy Bureau of Medicine and Surgery. 

Nordex SE increased 3.4% to €12.23 after the German wind turbine maker announced a significant increase in new order flow in 2024. 

New orders increased to 8.34 GW from 7.36 GW in 2023, driven by new customers in Brazil and Europe. 

European Stock Markets Rebounded, Germany's GDP Contracted Second Consecutive Year In 2024

European stock market indexes extended gains from the previous session, and bond yields halted their advance after inflation in the UK unexpectedly eased. 

Benchmark indexes in Frankfurt, Paris, Milan, and London traded higher after market sentiment improved and investors looked for stocks in the energy, industrial, and technology sectors. 

On the economic front, Germany's GDP shrank in 2024, the UK's inflation unexpectedly fell in December, and industrial output in the eurozone declined 1.9% from a year ago in November. 

According to the preliminary estimates released by the Federal Statistical Office, the German government's deficit-to-GDP ratio held steady at 2.6% in 2024, matching the rate in the previous year. 

Deficit in 2024 was €113 billion, an increase of €5.5 billion from 2023, amid rising costs of long-term care and social benefits for the elderly. 

UK's Consumer Price Inflation Unexpectedly Cooled In December 

The UK's consumer price inflation eased in December, meeting the expectations laid out by the Bank of England. 

Consumer price inflation cooled to 2.5% from 2.6% in the previous month, and the annual core rate of inflation, which excludes food and energy prices, slowed to 3.2% from 3.5%, respectively. 

The inflation slowdown was largely driven by the slower rate of increase in prices for restaurant and hotel prices, recreation and communication, and services. 

However, transportation deflation slowed, driven by a slower pace of decrease in fuel prices offset by a slight increase in used car prices. 

German Economy Contracted for Second Consecutive Year in 2024

Germany's economy contracted for the second consecutive year in a row in 2024, according to the latest report released by the Federal Statistical Office, or Destatis. 

Germany's economic activities shrank in three out of the last five years, amid rising costs of energy, stagnant wages, and increasing competition faced by exporters. 

Gross Domestic Product shrank 0.2% in 2024 following a decline of 0.3% in 2023, amid weaknesses in manufacturing and construction sectors. 

The manufacturing sector contracted by 3%, and the construction sector shrank by 3.8%, largely because of high prices and an increase in interest rates. 

The service sector expanded at an annual pace of 0.8%, but performance in different subsectors varied. 

Business services growth was flat, information and communication advanced 2.5%, and trade, transportation, and accommodation-related activities barely expanded. 

Europe Indexes and Yields

The DAX index increased by 0.5% to 20,366; the CAC-40 index rose by 0.4% to 7,425.41; and the FTSE 100 index inched higher by 0.7% to 8,254.24.

The yield on 10-year German bonds edged higher to 2.60%, French bonds rose to 3.44%, the UK gilts increased to 4.81%, and Italian bonds edged lower to 3.80%.

The euro edged lower to $1.03; the British pound inched lower to $1.22; and the U.S. dollar eased to 91.19 Swiss cents. 

Brent crude decreased $0.29 to $80.19 a barrel, and the Dutch TTF natural gas fell by €0.95 to €47.30 per MWh.

Europe Stock Movers

Hays PLC advanced 2.8% to 74.45 pence despite the recruitment services provider reporting a decline in revenue in the latest quarter. 

Serco plc increased 1.6% to 149.40 pence after the company won a $247 million contract to provide holistic health and fitness services to 45 U.S. Army brigades spread over 15 locations in the U.S. 

The company recently won a $193 million award from the U.S. Army for transition and counseling services for veterans, a $97 million new five-year contract for program management and support to the Naval Sea Systems Command, and a $33 million contract renewal to provide psychological health outreach support for the US Navy Bureau of Medicine and Surgery. 

Nordex SE increased 3.4% to €12.23 after the German wind turbine maker announced a significant increase in new order flow in 2024. 

New orders increased to 8.34 GW from 7.36 GW in 2023, driven by new customers in Brazil and Europe. 

European Stock Markets Rebounded, Germany's GDP Contracted Second Consecutive Year In 2024

European stock market indexes extended gains from the previous session, and bond yields halted their advance after inflation in the UK unexpectedly eased. 

Benchmark indexes in Frankfurt, Paris, Milan, and London traded higher after market sentiment improved and investors looked for stocks in the energy, industrial, and technology sectors. 

On the economic front, Germany's GDP shrank in 2024, the UK's inflation unexpectedly fell in December, and industrial output in the eurozone declined 1.9% from a year ago in November. 

According to the preliminary estimates released by the Federal Statistical Office, the German government's deficit-to-GDP ratio held steady at 2.6% in 2024, matching the rate in the previous year. 

Deficit in 2024 was €113 billion, an increase of €5.5 billion from 2023, amid rising costs of long-term care and social benefits for the elderly. 

UK's Consumer Price Inflation Unexpectedly Cooled In December 

The UK's consumer price inflation eased in December, meeting the expectations laid out by the Bank of England. 

Consumer price inflation cooled to 2.5% from 2.6% in the previous month, and the annual core rate of inflation, which excludes food and energy prices, slowed to 3.2% from 3.5%, respectively. 

The inflation slowdown was largely driven by the slower rate of increase in prices for restaurant and hotel prices, recreation and communication, and services. 

However, transportation deflation slowed, driven by a slower pace of decrease in fuel prices offset by a slight increase in used car prices. 

German Economy Contracted for Second Consecutive Year in 2024

Germany's economy contracted for the second consecutive year in a row in 2024, according to the latest report released by the Federal Statistical Office, or Destatis. 

Germany's economic activities shrank in three out of the last five years, amid rising costs of energy, stagnant wages, and increasing competition faced by exporters. 

Gross Domestic Product shrank 0.2% in 2024 following a decline of 0.3% in 2023, amid weaknesses in manufacturing and construction sectors. 

The manufacturing sector contracted by 3%, and the construction sector shrank by 3.8%, largely because of high prices and an increase in interest rates. 

The service sector expanded at an annual pace of 0.8%, but performance in different subsectors varied. 

Business services growth was flat, information and communication advanced 2.5%, and trade, transportation, and accommodation-related activities barely expanded. 

Europe Indexes and Yields

The DAX index increased by 0.5% to 20,366; the CAC-40 index rose by 0.4% to 7,425.41; and the FTSE 100 index inched higher by 0.7% to 8,254.24.

The yield on 10-year German bonds edged higher to 2.60%, French bonds rose to 3.44%, the UK gilts increased to 4.81%, and Italian bonds edged lower to 3.80%.

The euro edged lower to $1.03; the British pound inched lower to $1.22; and the U.S. dollar eased to 91.19 Swiss cents. 

Brent crude decreased $0.29 to $80.19 a barrel, and the Dutch TTF natural gas fell by €0.95 to €47.30 per MWh.

Europe Stock Movers

Hays PLC advanced 2.8% to 74.45 pence despite the recruitment services provider reporting a decline in revenue in the latest quarter. 

Serco plc increased 1.6% to 149.40 pence after the company won a $247 million contract to provide holistic health and fitness services to 45 U.S. Army brigades spread over 15 locations in the U.S. 

The company recently won a $193 million award from the U.S. Army for transition and counseling services for veterans, a $97 million new five-year contract for program management and support to the Naval Sea Systems Command, and a $33 million contract renewal to provide psychological health outreach support for the US Navy Bureau of Medicine and Surgery. 

Nordex SE increased 3.4% to €12.23 after the German wind turbine maker announced a significant increase in new order flow in 2024. 

New orders increased to 8.34 GW from 7.36 GW in 2023, driven by new customers in Brazil and Europe. 

Japan Indexes Halted 4-Day Market Slide and Yen Remained Under Pressure

Stock market indexes in Tokyo traded mixed after falling in the previous four sessions in a row amid shifting geopolitical and trade scenarios. 

The Nikkei 225 stock average decreased 0.3%, but the broader TOPIX rose 0.2%, and investors debated the domestic inflation outlook amid rising speculation that the BoJ is likely to hike its annual estimate.

The yen hovered near multi-month low against the U.S. dollar and bounded around 157.50 as investors speculated that the Bank of Japan is not likely to raise rates over the next two policy meetings. 

Benchmark indexes opened higher after the U.S. producer price inflation in December was cooler than expected, but the core rate of inflation accelerated to an annual rate of 3.5%. 

On Wednesday, the U.S. consumer price inflation is scheduled to be released, and investors are anticipating the overall inflation to accelerate to 2.9% in December from 2.5% in the previous month. 

Closer to home, Japan's business sentiment among large manufacturing companies improved to +2 in January from -1 in December, according to the Reuters Tankan survey released on Wednesday. 

The rebound in global demand lifted the business sentiment in oil refining, materials, steel, and chemical industries.

Japan Stock Movers 

The Nikkei 225 Stock Average decreased 0.3% to 38,366.03, but the broader TOPIX rose 0.2% to 2,686.68. 

Tech stocks, retailers, and financial services companies dominated trading in Tokyo. 

Tokyo Electron decreased 1.7% to ¥25,585.0, Advantest Corp. fell 3.9% to ¥9,057.0, Lastertec eased 2.2% to ¥14,600, and Softbank Group closed down 0.1% to ¥8,995. 

Seven & I Holdings gained 1% to ¥2,446.50, Takashimaya increased 0.1% to ¥1,228.0, and Isetan Mitsukoshi Holdings decreased 0.1% to ¥2,442.0. 

Mitsubishi UFJ Financial jumped 1.8% to ¥1,892.50, Sumitomo Mitsui Financial Group advanced 2.4% to ¥3,801.0, and Mizuho Financial Group increased 3.5% to ¥3,979.0.

Panasonic Holdings Corp. gained 0.6% to ¥1,557.0, Sony Group Corp. increased 1.6% to ¥3,206.0, Canon Inc. decreased 0.5% to ¥4,921.0, and Murata Manufacturing Company declined 1.1% to ¥2,469.0. 

Japan Indexes Halted 4-Day Market Slide and Yen Remained Under Pressure

Stock market indexes in Tokyo traded mixed after falling in the previous four sessions in a row amid shifting geopolitical and trade scenarios. 

The Nikkei 225 stock average decreased 0.3%, but the broader TOPIX rose 0.2%, and investors debated the domestic inflation outlook amid rising speculation that the BoJ is likely to hike its annual estimate.

The yen hovered near multi-month low against the U.S. dollar and bounded around 157.50 as investors speculated that the Bank of Japan is not likely to raise rates over the next two policy meetings. 

Benchmark indexes opened higher after the U.S. producer price inflation in December was cooler than expected, but the core rate of inflation accelerated to an annual rate of 3.5%. 

On Wednesday, the U.S. consumer price inflation is scheduled to be released, and investors are anticipating the overall inflation to accelerate to 2.9% in December from 2.5% in the previous month. 

Closer to home, Japan's business sentiment among large manufacturing companies improved to +2 in January from -1 in December, according to the Reuters Tankan survey released on Wednesday. 

The rebound in global demand lifted the business sentiment in oil refining, materials, steel, and chemical industries.

Japan Stock Movers 

The Nikkei 225 Stock Average decreased 0.3% to 38,366.03, but the broader TOPIX rose 0.2% to 2,686.68. 

Tech stocks, retailers, and financial services companies dominated trading in Tokyo. 

Tokyo Electron decreased 1.7% to ¥25,585.0, Advantest Corp. fell 3.9% to ¥9,057.0, Lastertec eased 2.2% to ¥14,600, and Softbank Group closed down 0.1% to ¥8,995. 

Seven & I Holdings gained 1% to ¥2,446.50, Takashimaya increased 0.1% to ¥1,228.0, and Isetan Mitsukoshi Holdings decreased 0.1% to ¥2,442.0. 

Mitsubishi UFJ Financial jumped 1.8% to ¥1,892.50, Sumitomo Mitsui Financial Group advanced 2.4% to ¥3,801.0, and Mizuho Financial Group increased 3.5% to ¥3,979.0.

Panasonic Holdings Corp. gained 0.6% to ¥1,557.0, Sony Group Corp. increased 1.6% to ¥3,206.0, Canon Inc. decreased 0.5% to ¥4,921.0, and Murata Manufacturing Company declined 1.1% to ¥2,469.0. 

China and Hong Kong Indexes Diverged Ahead of Fourth Quarter GDP Data

Stock market indexes in China and Hong Kong lacked direction amid domestic economic uncertainties and a lack of progress in the property market. 

The Hang Seng index increased 0.2%, but the mainland-focused CSI 300 index decreased 0.4% as investors worried that the persistent weakness in the property market is likely to overshadow the strength in exports. 

Investors are looking ahead to the release of fourth quarter economic growth data on Friday, and economists are anticipating a slight rebound following a string of stimulus measures announced in September. 

GDP growth in the fourth quarter is estimated to accelerate to 5.0% from 4.6% in the September quarter, according to an informal survey of seven economists in Beijing, Shanghai, and Hong Kong conducted by Ticker.com. 

China Stock Movers 

The Hang Seng index added 0.2% to 19,256.92, and the mainland-focused index decreased 0.4% to 3,804.78. 

China Merchants Bank advanced 3.2% to HK $41.20 after the company reported a rise in profit in 2024.

Zijin Mining Group decreased 5.2% to HK $14.58 after the gold mining company was added to a U.S. blacklist for its alleged involvement in forced labor activities linked to the Uygur ethnic minority. 

Country Garden Holdings Co. Ltd reported a loss of 12.8 billion yuan in the first half of 2024 following a record loss of 178.4 billion yuan in 2023. 

Country Garden remains suspended from trading since March 28, 2024, and last traded at HK $0.49. 

Three companies listed their shares on exchanges, with one listed on the Hong Kong Stock Exchange. 

Beijing Saimo Technology edged up slightly from its initial public offering price of HK $13 per share after the company listed its stock on the Hong Kong Stock Exchange. 

The simulation and validation tools developer sold 145 million shares and priced its shares near the bottom end of its filing range between HK $12 and HK $18 per share and raised about HK $420 million, or $54 million. 

 Scantech soared more than 200% on the first day of trading in Shanghai after the three-dimensional visual digital products maker raised 569 million yuan through its initial public offering. 

The company sold its 33 million shares and priced its offering at 33.46 per share. 

Yangzhou Huitong Technology soared more than three-fold on the first day of trading after the chemical company completed its initial public offering.

Yangzhou Huitong traded at 50.10 yuan after the equipment maker for polymers priced its offering at 11.80 yuan per share. 

China and Hong Kong Indexes Diverged Ahead of Fourth Quarter GDP Data

Stock market indexes in China and Hong Kong lacked direction amid domestic economic uncertainties and a lack of progress in the property market. 

The Hang Seng index increased 0.2%, but the mainland-focused CSI 300 index decreased 0.4% as investors worried that the persistent weakness in the property market is likely to overshadow the strength in exports. 

Investors are looking ahead to the release of fourth quarter economic growth data on Friday, and economists are anticipating a slight rebound following a string of stimulus measures announced in September. 

GDP growth in the fourth quarter is estimated to accelerate to 5.0% from 4.6% in the September quarter, according to an informal survey of seven economists in Beijing, Shanghai, and Hong Kong conducted by Ticker.com. 

China Stock Movers 

The Hang Seng index added 0.2% to 19,256.92, and the mainland-focused index decreased 0.4% to 3,804.78. 

China Merchants Bank advanced 3.2% to HK $41.20 after the company reported a rise in profit in 2024.

Zijin Mining Group decreased 5.2% to HK $14.58 after the gold mining company was added to a U.S. blacklist for its alleged involvement in forced labor activities linked to the Uygur ethnic minority. 

Country Garden Holdings Co. Ltd reported a loss of 12.8 billion yuan in the first half of 2024 following a record loss of 178.4 billion yuan in 2023. 

Country Garden remains suspended from trading since March 28, 2024, and last traded at HK $0.49. 

Three companies listed their shares on exchanges, with one listed on the Hong Kong Stock Exchange. 

Beijing Saimo Technology edged up slightly from its initial public offering price of HK $13 per share after the company listed its stock on the Hong Kong Stock Exchange. 

The simulation and validation tools developer sold 145 million shares and priced its shares near the bottom end of its filing range between HK $12 and HK $18 per share and raised about HK $420 million, or $54 million. 

 Scantech soared more than 200% on the first day of trading in Shanghai after the three-dimensional visual digital products maker raised 569 million yuan through its initial public offering. 

The company sold its 33 million shares and priced its offering at 33.46 per share. 

Yangzhou Huitong Technology soared more than three-fold on the first day of trading after the chemical company completed its initial public offering.

Yangzhou Huitong traded at 50.10 yuan after the equipment maker for polymers priced its offering at 11.80 yuan per share. 

India Movers: HDFC Asset Management, Hathway Cable & Datacom, Network18, Shoppers Stop

Benchmark indexes traded higher ahead of the pickup in the release of quarterly results. 

Consumer price inflation eased to a four-month low, but the wholesale price inflation accelerated in December. 

The Sensex index increased by 0.3% to 76,703.71, and the Nifty index advanced by 0.2% to 23,219.30.

On the Mumbai stock exchange, 36 stocks traded at their 52-week highs, and 50 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched lower to 6.88%, and the Indian rupee traded around a record low of 86.53 against the U.S. dollar.

HDFC Asset Management Company Ltd. jumped 0.72% to ₹3,863.70 after the company reported fiscal third quarter results.

Consolidated revenue in the December quarter increased to ₹1,027.72 crore from ₹814.18 crore, after-tax profit rose to ₹641.36 crore from ₹487.92 crore, and diluted earnings per share jumped to ₹29.90 from ₹22.82 a year ago.

Network18 Media & Investments Ltd. increased 2.6% to ₹61.49 after the company reported December quarter results.

Consolidated revenue in the December quarter decreased to ₹1,442.55 crore from ₹1,930.38 crore, after-tax losses expanded to ₹1,399.91 crore from ₹102.31 crore, and diluted losses per share expanded to 6 paisa from 39 paisa a year ago.

Shoppers Stop Ltd. increased 2.5% to ₹620.85 after the company said profit soared 42% in the fiscal third quarter. 

Consolidated revenue in the December quarter increased to ₹1,402.0 crore from ₹1,240.9 crore, net income jumped to ₹52.2 crore from ₹36.9 crore, and diluted earnings per share rose to ₹4.72 from ₹3.33 a year ago.

Hathway Cable & Datacom Ltd. increased 4.9% to ₹15.26 after the company reported December quarter results.

Consolidated revenue in the December quarter decreased to ₹532.1 crore from ₹535.3 crore, after-tax profit fell to ₹13.5 crore from ₹22.4 crore, and diluted earnings per share dropped to 8 paisa from 13 paise a year ago.

Anand Rathi Wealth Ltd. declined 0.86% to ₹ 3978.9 after the company reported December quarter results.

Consolidated revenue in the fiscal third quarter increased to ₹244.20 crore from ₹187.26 crore, net income rose to ₹77.30 crore from ₹58.04 crore, and diluted earnings per share increased to ₹18.58 from ₹13.87 a year ago.

Marathon Nextgen Realty Ltd. decreased 1.1% to ₹611.30 after the company reported a decline in revenue in the December quarter.

Consolidated revenue in the fiscal third quarter declined to ₹61.28 crore from ₹123.41 crore, net income rose to ₹34.84 crore from ₹28.58 crore, and diluted earnings per share increased to ₹6.80 from ₹5.82 a year ago.

India Movers: HDFC Asset Management, Hathway Cable & Datacom, Network18, Shoppers Stop

Benchmark indexes traded higher ahead of the pickup in the release of quarterly results. 

Consumer price inflation eased to a four-month low, but the wholesale price inflation accelerated in December. 

The Sensex index increased by 0.3% to 76,703.71, and the Nifty index advanced by 0.2% to 23,219.30.

On the Mumbai stock exchange, 36 stocks traded at their 52-week highs, and 50 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched lower to 6.88%, and the Indian rupee traded around a record low of 86.53 against the U.S. dollar.

HDFC Asset Management Company Ltd. jumped 0.72% to ₹3,863.70 after the company reported fiscal third quarter results.

Consolidated revenue in the December quarter increased to ₹1,027.72 crore from ₹814.18 crore, after-tax profit rose to ₹641.36 crore from ₹487.92 crore, and diluted earnings per share jumped to ₹29.90 from ₹22.82 a year ago.

Network18 Media & Investments Ltd. increased 2.6% to ₹61.49 after the company reported December quarter results.

Consolidated revenue in the December quarter decreased to ₹1,442.55 crore from ₹1,930.38 crore, after-tax losses expanded to ₹1,399.91 crore from ₹102.31 crore, and diluted losses per share expanded to 6 paisa from 39 paisa a year ago.

Shoppers Stop Ltd. increased 2.5% to ₹620.85 after the company said profit soared 42% in the fiscal third quarter. 

Consolidated revenue in the December quarter increased to ₹1,402.0 crore from ₹1,240.9 crore, net income jumped to ₹52.2 crore from ₹36.9 crore, and diluted earnings per share rose to ₹4.72 from ₹3.33 a year ago.

Hathway Cable & Datacom Ltd. increased 4.9% to ₹15.26 after the company reported December quarter results.

Consolidated revenue in the December quarter decreased to ₹532.1 crore from ₹535.3 crore, after-tax profit fell to ₹13.5 crore from ₹22.4 crore, and diluted earnings per share dropped to 8 paisa from 13 paise a year ago.

Anand Rathi Wealth Ltd. declined 0.86% to ₹ 3978.9 after the company reported December quarter results.

Consolidated revenue in the fiscal third quarter increased to ₹244.20 crore from ₹187.26 crore, net income rose to ₹77.30 crore from ₹58.04 crore, and diluted earnings per share increased to ₹18.58 from ₹13.87 a year ago.

Marathon Nextgen Realty Ltd. decreased 1.1% to ₹611.30 after the company reported a decline in revenue in the December quarter.

Consolidated revenue in the fiscal third quarter declined to ₹61.28 crore from ₹123.41 crore, net income rose to ₹34.84 crore from ₹28.58 crore, and diluted earnings per share increased to ₹6.80 from ₹5.82 a year ago.