Asian Shares Rise as Wall St. Ends February on a High Note

BANGKOK (AP) — Asian shares opened the new week with notable gains following a positive close on Wall Street, which brightened up the end of a disappointing February.

The mood in Asian markets was further boosted by encouraging data from Chinese factories, providing a strong start for March.

In Hong Kong, shares of Chinese bubble tea brand Mixue Bingcheng surged by 40% following its impressive $444 million IPO. Local reports highlighted that it achieved a record for subscriptions, exceeding 1 trillion Hong Kong dollars (approximately $128 billion).

The Hang Seng Index in Hong Kong rose by 1.2% to settle at 23,222.88, while the Shanghai Composite index increased by 0.3% to reach 3,332.27.

In Tokyo, the Nikkei 225 saw an increase of 1.4%, closing at 37,662.14. South Korea's markets were closed due to a holiday, but Australia's S&P/ASX 200 climbed by 0.6% to 8,220.80.

Conversely, Taiwan's Taiex faced a decline of 1.4%, and Bangkok's SET index fell by 0.7%.

Recent surveys from Chinese factory managers indicated improvements in February, as new orders increased. This rise likely reflects a rush by companies to secure orders prior to escalating tariffs on exports to the United States. President Donald Trump's administration has significantly raised import duties on Chinese products to 20%.

On Wall Street, the S&P 500 index jumped by 1.6% to 5,954.50 on Friday. The Dow Jones Industrial Average gained 1.4%, closing at 43,840.91, while the Nasdaq composite also increased by 1.6% to 18,847.28.

The S&P 500 had struggled recently, dropping in five of the six previous days amid weaker economic reports and concerns regarding the potential impact of Trump's tariffs. Artificial intelligence stocks, which had been performing well, also experienced sharp declines, with Bitcoin dropping over 20% from its peak.

However, Nvidia’s stock rose by 4% after an earlier drop, helping lift the S&P 500. Early Monday, Bitcoin was trading around $92,760 after having been approximately $84,000 on Friday.

The stock market's upward movement followed an economic report showing mixed results. The inflation rate appears to have eased slightly, as per a favored measure of the Federal Reserve, which could allow the bank more flexibility in cutting interest rates later this year.

This year, the Fed has held interest rates steady after making significant cuts last year, largely due to persistent inflation concerns.

The report also indicated that U.S. households reduced spending in January, potentially affecting a key driver of economic growth even with high-interest rates in place.

Although inflation remains high, it is not as severe as it was during its peak in 2022. There are worries that Trump’s tariffs and policies could further elevate living costs.

Investors are hopeful that the tariff discussions are primarily a part of Trump's negotiating strategy with other countries. If this is true, it might lead to less harm to the global economy than initially anticipated.

However, there are indications that consumers in the U.S. are beginning to prepare for a significant increase in inflation in the future, which could influence their spending behavior, possibly hampering overall economic growth.

According to Bank of America economists, the ongoing uncertainty regarding tariffs and other policies could diminish market trust if favorable adjustments do not emerge from Trump’s administration.

The decline in U.S. household spending in January may have been influenced by extreme winter weather and other exceptional factors. Yet, it also coincides with signs of slowing U.S. economic growth as the country ended 2024 at a robust pace.

As of early Monday, U.S. benchmark crude oil gained 42 cents, reaching $70.18 per barrel, while Brent crude rose by 43 cents, hitting $73.24 per barrel.

The U.S. dollar depreciated to 150.46 Japanese yen, down from 150.72 yen. The euro increased to $1.0420 from a previous $1.0402.

Asian, Shares, Wall, Street, Economy