Asian Shares Decline as Tokyo Market Remains Closed

TOKYO (AP) — On Thursday, Asian shares mostly fell, with a notable absence of activity in Japan as the Tokyo stock market remained shut for New Year celebrations. This closure has created a ripple effect across the region's markets.

Investor sentiment has been cautious due to concerns regarding potential policy changes under President Donald Trump, coupled with ongoing political uncertainty in South Korea, fostering a prevailing wait-and-see attitude among traders.

Market Movements:

In early trading, Australia's S&P/ASX 200 index saw a slight increase of 0.4%, reaching a value of 8,193.90. Conversely, South Korea's Kospi index experienced a minor decline of nearly 0.1%, settling at 2,397.54. In Hong Kong, the Hang Seng index fell by 1.3%, bringing it down to 19,807.19, and the Shanghai Composite index dropped by 0.8%, closing at 3,325.56.

In the United States, trading on Wall Street was suspended on Wednesday in observance of the New Year’s Day holiday.

Upcoming economic data from the U.S. includes an updated report for November's construction spending, to be unveiled on Thursday, followed by manufacturing figures for December set to be released on Friday.

In January, the New York Stock Exchange and Nasdaq plan to close their equity and options markets on January 9 as part of a National Day of Mourning for former President Jimmy Carter, who passed away at the age of 100 at his residence in Plains, Georgia.

Last Tuesday, U.S. stock indexes ended mostly lower, marking a disappointing close on the last trading day of a record-breaking year for Wall Street.

The S&P 500 index, which had reached 57 record highs throughout 2024, finished down by 0.4%, closing at 5,881.63. Even with this decline, the index recorded an impressive annual gain of 23.3%, making it the second consecutive year of over 20% growth, a feat not seen since 1998.

Additionally, the Dow Jones Industrial Average reduced by 0.1% to end at 42,544.22, while the Nasdaq composite saw a more significant drop of 0.9%, finishing at 19,310.79.

The rally in U.S. markets has largely been fueled by thriving technology stocks, significantly benefiting the Nasdaq, which posted a yearly increase of 28.6%. The Dow performed comparably, achieving a 12.9% increase over the same period.

All in all, the S&P 500 fell by 25.31 points, while the Dow dropped by 29.51 points and the Nasdaq slid by 175.99 points.

The robust performance of U.S. markets has been attributed to a growing economy, strong consumer expenditure, and a vibrant job market. Notably, the surge in stock prices for companies specializing in artificial intelligence, such as Nvidia and Super Micro Computer, has propelled the market to unprecedented heights.

The Federal Reserve's three interest rate cuts in 2024 indicate a more reserved approach for 2025, especially as inflation remains stubbornly high. This is amidst concerns regarding President-elect Trump's potential tariff increases on imported goods, which may reignite inflation as companies adjust prices accordingly.

In energy markets, benchmark U.S. crude saw an increase of 36 cents, reaching $72.08 a barrel, while Brent crude, the international oil standard, rose by 34 cents to $74.98 a barrel.

In foreign exchange trading, the U.S. dollar slipped slightly to 157.28 Japanese yen, down from 157.24 yen. The euro increased to $1.0373, rising from $1.0361.

This fluctuation in Asian stocks highlights the ongoing uncertainties in both regional and global markets, as investors remain vigilant and responsive to evolving economic indicators and policy shifts.

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