Hold Seng Index: AI Rally, Fed Fee Reduce Bets, and Trump’s Tariffs – Weekly Recap…

The Hold Seng Index prolonged its profitable streak to 5 weekly features, surging by 7.04%, its finest week since October. Rising bets on a Fed price reduce and DeepSeek’s AI-fueled market enthusiasm fueled the rally.

The Hold Seng Know-how Index rallied 7.30%, contributing to the weekly features. Tech giants Alibaba Group Holdings Ltd. (9988) soared 24.10% within the week, whereas Tencent (0700) and Baidu (9888) gained 10.55% and 11.94%, respectively.

Mainland China’s fairness markets additionally benefited from US tariff developments and China’s place within the international AI race. The CSI 300 and Shanghai Composite rose 1.19% and 1.30%, respectively. Nonetheless, the features had been extra modest, with the Mainland markets unaffected by sentiment towards Fed coverage.

For extra evaluation on the Hold Seng Index and international market tendencies, click on right here.

Commodities: Gold Nears $three,000 Iron Ore Dips

Commodities had a combined week ending February 14:

• Gold prolonged its profitable streak to seven weeks, rising zero.79% to shut at $2,883. Considerably, gold struck a brand new document excessive of $2,943 earlier than easing again.
• In the meantime, Iron ore spot costs slid three.14% to $788.11 amid lingering considerations over US-China commerce insurance policies, regardless of a short lived reprieve from tariff delays.
• Crude oil costs fell amid larger US inventories, a possible finish to the Ukraine conflict, and tit-for-tat US tariff threats.

ASX 200 Strikes New Document on Banking and Gold Shares

The ASX 200 rose zero.52% for the week, climbing to a brand new document excessive, with banking, gold, and tech shares main the cost.

• Northern Star Sources (NST) jumped four.68%, monitoring gold costs larger.
• The Commonwealth Financial institution of Australia (CBA) rallied 1.70% after posting better-than-expected income, pushed by a pointy drop in mortgage impairment fees.
• Westpac Banking Corp. (WBC) ended the week up 1.97%, benefiting from decrease US Treasury yields, which elevated demand for high-yielding Aussie banks.

Nikkei Index Beneficial properties as Yen Weakens

The Nikkei Index ended the week zero.62% larger, supported by the USD/JPY pair advancing by zero.59% to 152.282. A weaker Japanese Yen could enhance abroad earnings and company valuations. The Yen weakened in opposition to the US Greenback regardless of rising bets on a second H1 2025 Financial institution of Japan price hike.

Japan’s producer costs rose four.2% year-on-year in January, up from three.9% in December, signaling stronger demand.

Company earnings contributed to the weekly features. Sony Corp. (6758) jumped 6.37% after reporting spectacular gaming and music division efficiency.

Market Outlook: Key Occasions to Watch

The approaching week is pivotal for Asian markets, with US tariff insurance policies, geopolitics, and financial information in focus.

• A possible de-escalation within the Ukraine conflict and easing commerce conflict fears would enhance threat sentiment.
• The RBA rate of interest determination may affect the ASX 200, whereas contemporary stimulus measures from Beijing may assist the broader markets.
• In Japan, financial information will drive BoJ price hike bets, doubtlessly lifting the Yen and weighing on export-linked shares.

Merchants ought to monitor international financial tendencies to navigate shifting market dynamics.