Post by : Bianca
Haleem
Asian markets kicked off the year positively on Friday, with a notable increase in technology stocks leading the charge. The Hang Seng index in Hong Kong jumped 2.2%, finishing at 26,189.79, fueled by substantial growth in e-commerce and tech firms.
E-commerce titan Alibaba saw a rise of 3.2%, while Baidu surged 7.5%. Baidu's stock spike followed its announcement of spinning off its AI chip subsidiary, Kunlunxin, with intentions to make it public in Hong Kong by early 2027, pending regulatory clearance.
Key markets remained closed in regions including Tokyo, Shanghai, Thailand, and New Zealand.
In South Korea, the Kospi rose 1.5% to 4,277.94, and Australia's S&P/ASX 200 edged up 0.2% to 8,727.30. Taiwan's Taiex increased by 1.1%, while India's Sensex was up by 0.1%.
This rally reflects heightened expectations surrounding artificial intelligence's role in bolstering demand for computer chips and infrastructure, which in turn propels tech sector growth throughout Asia.
Despite weak recent manufacturing data in the region, trade volumes have held strong. Analyst Shivaan Tandon from Capital Economics noted a surge in exports, hinting at a promising near-term outlook for Asia's export-driven manufacturing industry.
Gains in U.S. Market Futures and Commodities
U.S. stock futures opened positively on Friday, with the S&P 500 futures rising by 0.5% and Dow Jones Industrial Average futures up by 0.3%, indicating a hopeful start to the year.
On the last trading day of 2025, U.S. stocks faced losses despite an overall positive yearly performance. The S&P 500 ended down 0.7% at 6,845.50, the Dow fell 0.6% to 48,063.29, and the Nasdaq decreased by 0.8% to 23,241.99.
The S&P 500 reached 39 record highs throughout 2025, concluding the year with a 16.4% gain. The Nasdaq ended up 20.4%, and the Dow rose 13%. This surge was largely driven by optimism about artificial intelligence enhancing corporate profitability across multiple sectors.
The performance of Wall Street in 2025 also benefited from alleviated trade tensions, with President Donald Trump pausing tariffs and engaging in renewed trade talks, alongside robust corporate earnings and three rate cuts by the Federal Reserve.
The Fed is anticipated to maintain interest rates in the upcoming January meeting.
Recent data from the Labor Department indicated a slight decline in new unemployment claims last week, showing stable layoffs in a weakening job market.
Sector Trends and Commodity Prices
On Wednesday, every sector of the S&P 500 closed lower, with tech stocks experiencing the most significant drops. Western Digital's shares dipped 2.2%, and Micron Technology fell by 2.5%, despite their status as top performers in 2025.
In the commodities sector, silver rebounded with a 3.5% increase after earlier declines, recording a rise of over 140% for the year. Gold gained 1.1%, totaling a 63.7% increase in 2025.
U.S. benchmark crude oil saw a rise of 35 cents, reaching $57.77 per barrel, while Brent crude also increased by 35 cents to $61.20 per barrel.
In forex markets, the U.S. dollar appreciated slightly against the Japanese yen, moving from 156.75 to 156.80 yen. The euro experienced a modest strengthening, rising from $1.1746 to $1.1760.
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