TOKYO, JAPAN – The Tokyo Stock Exchange (TSE), operated by Japan Exchange Group Inc. (JPX), saw Japan’s Nikkei 225 briefly cross the 38,000 mark for the first time since the asset bubble burst in 1990. Despite rallying about 3% and reaching 34-year highs, the index was unable to sustain its run above 38,000 points, falling minutes before its close to end at 37,963.97. The Topix also climbed 2.12% to 2,612.03, also at a 34-year high.
Other Asia-Pacific markets mostly rose as more markets return to trade from the Lunar New Year holiday, including South Korea and Singapore. South Korea’s Kospi was up 1.12% as it returned to trade and closed at 2,649.64, with the small-cap Kosdaq rising 2.25% to finish at 845.15. In Australia, the S&P/ASX 200 slipped 0.15% to 7,603.6, marking a third straight day of losses. Markets in China are closed for the week, due to the Lunar New Year holiday. Hong Kong is closed Tuesday, but is set to resume trading Wednesday.
Overnight in the U.S., the Dow Jones Industrial Average rose to a new high on Monday as investors awaited fresh inflation and earnings data. The 30-stock index advanced 0.33% to settle at 38,797.38. In contrast, the S&P 500 inched lower by 0.09%, while the Nasdaq Composite slid 0.3%. Japan’s corporate goods price index rose 0.2% in January, beating the 0.1% expected by economists polled by Reuters. That compares with the revised 0.2% growth rate for December.
Overall, the market performances in Asia and the U.S. are indicative of the global market trends, impacted by various factors such as corporate performance, inflation data, and holiday trading patterns. The rise and fall of key indexes provide insights into the shifts and movements in the international financial landscape. As investors continue to monitor major central bank decisions and high-stakes announcements, the market’s resilience and sensitivity to various influences shape the ongoing narrative of global economic trends.