Asian stock markets presented a mixed performance on Tuesday, echoing the indecisive signals from Wall Street the night before. Traders showed hesitance in executing significant transactions due to the closure of major regional markets for the Lunar New Year festivities. Additionally, there was a prevailing sense of caution prior to anticipated monetary policy announcements by the Bank of Canada, the US Federal Reserve, and the European Central Bank later this week. Most Asian markets had closed with losses on Monday.
The technology sector faced notable sell-offs following the announcement that China's budget-friendly startup, DeepSeek, with its AI Assistant, had surpassed ChatGPT to become the top-rated free application on Apple's App Store in the US. This development provoked concerns about the potential erosion of US dominance in the AI sector.
In Australia, the stock market displayed a relative flatness on Tuesday, succeeding gains seen in the preceding session. The S&P/ASX 200 index maintained its position above the 8,400 mark, buoyed by gains in iron ore mining and financial stocks. However, this was partially counterbalanced by declines in gold mining, energy, and technology shares. The S&P/ASX 200 Index registered a minor increase of 3.50 points, or 0.04%, reaching 8,412.40, after hitting a peak of 8,427.10 and dipping to a low of 8,386.50 earlier. Conversely, the All Ordinaries Index dipped by 3.10 points, or 0.04%, to 8,657.30. Australian shares had closed moderately higher on Friday, ahead of Monday's holiday.
In the mining sector, BHP Group and Fortescue Metals witnessed gains of nearly 1% each. In contrast, Rio Tinto and Mineral Resources saw slight declines ranging from 0.2% to 0.4% each.
The oil sector experienced a mostly downward trend, with Origin Energy down nearly 2%, and Woodside Energy and Santos facing declines between 0.1% to 0.5% each. Beach energy slightly increased by 0.1%.
Tech stocks were predominantly under pressure. Zip and WiseTech Global plummeted by over 1% each, and Appen dropped 3.5%. However, Xero saw a modest rise of nearly 1%, while Block, owner of Afterpay, remained static.
Gold miners didn't fare well either, with Gold Road Resources dropping nearly 5%, Newmont down nearly 1%, Northern Star resources decreasing by 2.5%, and Evolution Mining slightly down by 0.5%, while Resolute Mining edged up almost 1%.
Among the big four banks, Westpac, ANZ Banking, and National Australia Bank each rose by over 1%, with Commonwealth Bank gaining nearly 1%.
Elsewhere in the market, Nuix shares plummeted almost 17% after announcing a decline in underlying earnings for the half-year to December, attributed to project delays and acceptance of more complex contracts. Shares in Telix Pharmaceuticals, however, surged over 4% following the completion of its acquisition of US-listed RLS Radiopharmacies for $230 million.
In currency trading, the Australian dollar was valued at $0.626 on Tuesday.
In Japan, the stock market declined sharply on Tuesday, extending losses from the previous two sessions, mirroring Wall Street's mixed results. The Nikkei 225 index fell slightly, just above the 38,100 level, with broad sector weaknesses led by heavyweights and tech stocks, contrasted only by gains in financial stocks.
The Nikkei 225 Index closed the morning session at 39,340.15, losing 225.65 points, or 0.57%, having touched a low of 38,886.05 earlier. Japanese equities had recorded a significant downturn on Monday.
Market heavyweight SoftBank Group fell nearly 6%, while Uniqlo operator Fast Retailing edged up 0.2%. Among automakers, Honda and Toyota saw small decreases of 0.5% and 0.4%, respectively.
In the tech sector, Advantest dropped by more than 9%, Tokyo Electron lost over 5%, and Screen Holdings experienced a decline of 3.5%.
In banking, Mitsubishi UFJ Financial gained over 1%, Mizuho Financial added almost 2%, and Sumitomo Mitsui Financial rose by more than 1%.
Among major exporters, Panasonic and Mitsubishi Electric both declined by over 1%, while Canon fell nearly 1%, and Sony edged up by 0.3%.
Other significant decliners included Japan Steel Works, tumbling more than 9%, with Furukawa Electric and Fujikura both slipping over 7%. Mitsubishi Heavy Industries dropped nearly 7%, and Disco saw a decline of over 6%. Fuji Electric and Socionext both decreased almost 6%, while Resonac Holdings and Hitachi dropped over 4% each, joined by NTT Data Group falling nearly 5%, and Kawasaki Heavy Industries and Sumitomo Electric Industries each slipping over 4%.
Conversely, Hitachi Construction Machinery surged nearly 7%, with Keisei Electric Railway and Kubota advancing more than 3%. Nitori Holdings and Mitsui Fudosan also saw gains close to 3% each.The U.S. dollar has been trading in the upper range of 155 yen in the currency markets on Tuesday. Across Asia, markets show varied performances: Hong Kong and Singapore have risen by 0.1% and 0.7%, respectively, whereas New Zealand and Malaysia have both declined by 0.5%. Trading activities are suspended in China, South Korea, Taiwan, and Indonesia due to the Lunar New Year celebrations. On Wall Street, Monday saw predominantly negative trends, with technology stocks experiencing notable setbacks due to ongoing sell-offs throughout the day.
Among the major indices, the Dow Jones Industrial Average rose by 289.33 points, or 0.65%, closing at 44,713.58. Conversely, the S&P 500 fell by 88.96 points, or 1.46%, to close at 6,012.28, and the Nasdaq Composite Index dropped 612.47 points, or 3.07%, concluding at 19,341.83.
In Europe, market fortunes were mixed. Germany's DAX and France's CAC 40 saw declines, finishing down by 0.53% and 0.27%, respectively, while the UK's FTSE 100 showed a marginal increase, inching up by 0.02%.
Global crude oil prices took a significant hit on Monday, amid heightened concerns regarding tariff threats and ambiguities surrounding U.S. trade policies. Additionally, disappointing manufacturing data from China has stirred apprehensions about future demand. Consequently, West Texas Intermediate crude oil futures for March delivery dropped by $1.49, or 2%, settling at $73.17 per barrel.
