Asian stock markets traded in a tight range on Monday as a week-long Lunar New Year holiday in China reduced regional trading volumes, while weak Japanese GDP data pressured Tokyo equities. Market participation was further subdued with South Korea, Taiwan, and U.S. markets closed for holidays, leading to cautious investor sentiment across the region.
Japan’s Nikkei 225 slipped 0.2%, and the broader TOPIX index declined 0.8% after fourth-quarter economic growth figures fell significantly short of expectations. Japan’s GDP expanded just 0.2% year-on-year in Q4, well below the 1.6% forecast, highlighting continued economic fragility. The data reflected weak business investment, softer export demand, and sluggish private consumption. Although Tokyo introduced stimulus measures in late 2025, their impact on growth appeared limited.
Despite the disappointing GDP report, losses in Japanese stocks were somewhat contained amid expectations that Prime Minister Sanae Takaichi may introduce additional fiscal stimulus to bolster the economy. The weaker growth outlook also tempered expectations for further Bank of Japan interest rate hikes, even as inflation remained relatively sticky during the quarter.
In Hong Kong, the Hang Seng Index edged up 0.3% in light trading. CMOC Group and Laopu Gold surged roughly 6% each after being added to the Hang Seng Index, while battery manufacturer CATL advanced 2.5% on similar news. Conversely, Zhongsheng Group Holdings declined 2% following its removal from the benchmark index.
Elsewhere in Asia-Pacific markets, Australia’s ASX 200 gained 0.2%, while Singapore’s Straits Times Index dipped 0.1% after weaker-than-expected non-oil export data for January. India’s Nifty 50 futures fell 0.4%, extending concerns over artificial intelligence-driven disruptions in the IT sector, which had already pushed the index down 1.3% on Friday.
With China’s markets closed for the week and limited global cues, investors remain focused on economic growth trends, inflation data, and central bank policy signals across major Asian economies.


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