Cling Seng Index Soars on AI Shares, Whereas Nikkei Falls on BoJ Fee Hike Bets…

The Cling Seng Index had its finest week since October, rallying four.49%. Easing commerce tensions and China’s development within the AI house lifted investor sentiment.

The Cling Seng Tech Index soared 9.03% within the week, extending its successful streak to 4 weeks. Tech giants Tencent (0700) and Alibaba (9988) posted positive aspects of 6.36% and 13.25%, respectively.

Mainland China’s fairness markets additionally benefitted from commerce aid and AI momentum. The CSI 300 and Shanghai Composite superior by 1.98% and 1.63%, respectively.

Notably, buyers brushed apart weaker-than-expected non-public sector PMI numbers. China’s Caixin Manufacturing PMI fell from 50.5 in December to 50.1 in January, whereas the Companies PMI dropped to 51.zero (earlier: 52.2).

For extra evaluation on the Cling Seng Index and international market developments, click on right here.

Commodities: Gold Rallies, Oil Weakens on Demand Issues

Commodities had a blended week ending February 7:

• Gold prolonged its successful streak to a formidable six weeks, climbing 2.25% to shut the week at $2,860. Considerably, gold hit a brand new document excessive of two,887 earlier than easing again.
• Iron ore spot gained zero.98% to $813.68 amid hopes that China and the US can keep away from a full-blown commerce struggle.
• In the meantime, crude oil costs retreated as US inventories surged, and Trump threatened counter-tariffs towards buying and selling companions retaliating to US tariffs. The information broke after the Asian markets had closed on Friday.

ASX 200 Ends 4-Week Successful Streak

The ASX 200 fell zero.24% within the week ending February 7. Nevertheless, banking, gold, mining, and tech shares offered some assist.

Notable movers included Northern Star Sources, which rallied 2.49%, monitoring greater gold costs.

Falling US Treasury yields boosted demand for high-yielding Aussie banks. The Nationwide Australia Financial institution (NAB) superior 1.40%, whereas The Commonwealth Financial institution of Australia gained 1.31%.

Nikkei Index Retreats Amid BoJ Fee Hike Bets

The Nikkei Index ended the week down 1.03%. Financial knowledge from Japan fueled expectations of a second Financial institution of Japan price hike in H1 2025. Key knowledge included:

• Common money earnings jumped by four.eight% year-on-year in December, up from three.9% in November.
• Family spending elevated by 2.7% year-on-year in December after falling zero.four% in November.

The USD/JPY pair tumbled 2.43%, closing the week at 151.90 on BoJ price hike expectations. A stronger Yen may dent earnings, pressuring Japanese shares.

Tokyo Electron (8035) fell 2.69%, whereas Nissan Motor Corp. (7201) rallied four.23% after its board rejected a merger with Honda Motor Co. (7267). Honda Motor Co ended the week down 2.84%.

Market Outlook: Key Occasions to Watch

Asian markets face potential volatility within the coming week. Trump’s risk of tariffs on economies retaliating towards US import duties may escalate commerce tensions. An escalation within the US-China commerce struggle may weigh on Asian markets.

Nevertheless, central financial institution ahead steering, company earnings, and financial indicators may also be essential.

• Main earnings reviews embrace Softbank Group, ANZ Holdings (ANZ), Macquarie (MQG), Commonwealth Financial institution of Australia (CBA), Northern Star Sources, Sony Corp. (6758), and Honda Motor Co.
• Financial coverage expectations will possible affect ASX 200 and Nikkei Index developments. A hawkish BoJ and stronger Yen may weigh on Japanese shares, whereas rising bets on a number of RBA price cuts could assist Aussie shares.

Merchants ought to intently monitor financial developments to navigate shifting dynamics.