On Monday, Asian stocks experienced a positive surge following new support measures for China's equity and property markets, declared by Chinese regulators. This boost was in part a result of China's securities regulator deciding to suspend lending specific stocks for short sales from the beginning of the week. Furthermore, to help stimulate the property sector, domestic buying restrictions were alleviated in the city of Guangzhou.
However, on a regional level, the growth was somewhat limited in light of a busy week filled with corporate earnings reports, the latest economic data, and alterations to central bank policies. The focus was turned toward the Federal Open Market Committee (FOMC) meeting set for Wednesday. Other factors such as unemployment data, and payroll reports were also in place to gauge the labor market's strength, thus keeping the U.S. dollar steady in Asian trading.
In the energy sector, an escalation of Middle East tensions caused a boost in oil prices. This was further catalyzed by U.S. President Joe Biden's promise for reprisal following attacks injuring U.S. troops in Jordan and a fuel tanker in the Red Sea, carried out by Iranian-backed militants.
In China, the Shanghai Composite index observed some fluctuations due to China Evergrande Group being ordered to liquidate by a court, ending the trading session with a 0.92% decrease. Contrarily, Hong Kong's Hang Seng index saw a 0.78% hike.
In Japan, due to a favorable exchange rate, exports along with energy shares saw significant growth, lifting the overall market. The Nikkei index saw a 0.77% rise, while the broader Topix index settled a 1.27% surge.
South Korea's stock market also exhibited a positive trend, marking a third consecutive session of growth attributed to institutional and foreign buying. Some notable rises included Samsung Biologics with a 3.5% increase, and SK Biopharmaceuticals surging by 6.7% following the US Congress' decision to ban a Chinese genomics company from trading within U.S. territory. Other significant gains included automakers Hyundai Motor and Kia rising 4.4% and 5.8% respectively, and SK Innovation, a refining company, increasing by 3.9%.
Australian markets saw modest growth, with rising crude oil prices boosting energy stocks and property stocks also experiencing a hike. However, the gains were slightly offset by falling mining and technology sectors. The S&P ASX 200 and All Ordinaries index both rose by 0.30%, while New Zealand's S&P NZX-50 index saw a 0.31% increase.
Meanwhile, U.S. stocks were slightly mixed on Friday following a disappointing Q1 outlook from semiconductor giant Intel, and the PCE index report for December indicating ongoing moderation of inflation rates. The Dow Jones rose slightly by 0.2%, setting a new record closing high, but the S&P 500 and the Nasdaq Composite experienced small losses.
