Japan’s benchmark Nikkei 225 index experienced a decline of approximately 1% on Tuesday, coinciding with a U.S. national holiday, while the majority of Asian markets remained closed in observance of the Lunar New Year holidays. U.S. futures experienced a downturn, while oil prices exhibited a varied performance. The prices of gold and silver experienced a decline. Weak economic data released Monday seemed to be dampening sentiment in Tokyo, while a 6.2% decline for tech giant SoftBank Group contributed to the downward pressure on shares. The recent downturn comes on the heels of a significant surge following a decisive victory for Prime Minister Sanae Takaichi’s ruling party in the general election held on February 8. By midday, the Nikkei 225 had declined by 1% to 56,237.65.
Market participants probably engaged in profit-taking following the recent advancements that propelled the Nikkei to unprecedented heights. Polls indicate that Takaichi’s popularity is gradually declining, as expectations for economic recovery stemming from her proposals to enhance government expenditure and reduce taxes diminish. In Australia, the S&P/ASX 200 experienced an increase of 0.3%, reaching a level of 8,964.10, whereas India’s Sensex saw a slight decline of 0.1%. In Thailand, the stock market experienced a decline of less than 0.2%. European equities concluded the day with a mixed performance on Monday, while U.S. markets remained closed in observance of Presidents Day. The U.S. markets are scheduled to resume operations on Tuesday.
On Friday, the S&P 500 experienced a marginal increase of less than 0.1%, following a significant decline that marked one of its most substantial losses since Thanksgiving. The Dow Jones Industrial Average experienced a modest increase of 0.1%, while the Nasdaq composite recorded a slight decline of 0.2%. Share prices have been experiencing fluctuations, reflecting varying levels of confidence regarding substantial investments in AI. Market participants are closely monitoring inflation dynamics and the potential implications of price pressures on interest rate trajectories.
In other transactions early Tuesday, benchmark U.S. crude increased by 65 cents to $63.54 per barrel. Brent crude, the international benchmark, declined by 29 cents to $68.36 per barrel. The U.S. dollar declined to 153.17 Japanese yen, down from 153.51 yen. The euro was valued at $1.1841, a decrease from the previous rate of $1.1852. The price of gold experienced a decline of 1.4%, while silver saw a decrease of 3.4%. Bitcoin experienced a decline of 0.6%, settling at approximately $68,500.