Asian Currencies Hold Firm as Dollar Rebounds on Fed Chair Nomination Hopes 
U.S.–Venezuela Relations Show Signs of Thaw as Top Envoy Visits Caracas 
China Factory Activity Slips in January as Weak Demand Weighs on Growth Outlook 
South Korea Exports Surge in January on AI Chip Demand, Marking Fastest Growth in 4.5 Years 
BOJ Policymakers Warn Weak Yen Could Fuel Inflation Risks and Delay Rate Action 
JPMorgan Lifts Gold Price Forecast to $6,300 by End-2026 on Strong Central Bank and Investor Demand 
IMF Forecasts Global Inflation Decline as Growth Remains Resilient 
Starmer’s China Visit Highlights Western Balancing Act Amid U.S.-China Rivalry 
EU Recovery Fund Faces Bottlenecks Despite Driving Digital and Green Projects 
India Budget 2025 Highlights Manufacturing Push but Falls Short of Market Expectations 
South Korea Factory Activity Hits 18-Month High as Export Demand Surges 
Why Trump’s new pick for Fed chair hit gold and silver markets – for good reasons 
U.S. Eases Venezuela Oil Sanctions to Boost American Investment After Maduro Ouster 
UK Employers Plan Moderate Pay Rises as Inflation Pressures Ease but Persist 
Philippines Manufacturing PMI Hits Nine-Month High Despite Weak Confidence Outlook 
Asian stock markets traded mixed on Friday as regional holidays kept volumes muted, with Japanese equities rallying near record highs while Hong Kong markets slipped on sharp electric vehicle losses. Investor sentiment was shaped by developments in technology, central bank commentary, and political shifts in Japan.
Japan’s Nikkei 225 jumped 1.6%, approaching all-time highs, while the TOPIX gained 1.3%. The surge was fueled by strong gains in technology shares, led by Hitachi Ltd., which soared 9.5% after unveiling a partnership with OpenAI to collaborate on AI-powered energy and storage solutions. The announcement sparked optimism over accelerated artificial intelligence development in Japan, boosting related stocks such as Renesas Electronics (+8%), Advantest (+3.4%), Tokyo Electron (+2.3%), and SoftBank Group (+3.6%).
Further support for Japanese markets came from Bank of Japan Governor Kazuo Ueda, who flagged economic uncertainties tied to U.S. tariffs and overseas conditions. While Ueda reiterated the potential for future rate hikes if inflation strengthens, his cautious tone suggested the BOJ may not rush tightening. Investors are also watching the upcoming Liberal Democratic Party leadership vote, which will determine the next Prime Minister following Shigeru Ishiba’s resignation. Candidates Sanae Takaichi, Shinjiro Koizumi, and Yoshimasa Hayashi are viewed as leading contenders, with markets anticipating a shift toward less restrictive fiscal policies.
In contrast, Hong Kong’s Hang Seng index fell 0.7% as electric vehicle makers slumped in tandem with Tesla’s 5% overnight drop. BYD slid 4.7%, Li Auto lost 4.2%, and Geely shed 2.4%. Despite Tesla reporting record Q3 deliveries, analysts cited concerns over expiring U.S. EV subsidies and fierce competition in China. Broader Hong Kong tech shares also retreated after earlier gains, though the index still held a 3.7% weekly rise.
Elsewhere, Singapore’s Straits Times rose 0.2%, Australia’s ASX 200 gained 0.4%, while India’s Nifty 50 slipped 0.2% under pressure from U.S. trade tariffs. With China and South Korea closed for holidays, regional trading remained subdued. Meanwhile, Wall Street’s S&P 500 hit another record high, and futures in Asian trade edged up 0.1%, though the U.S. government shutdown cast uncertainty over the release of key nonfarm payrolls data.
