Asian Shares Rally After Wall Street's Positive Turn and Strong Chinese Data

BANGKOK (AP) — Asian shares began the week with noticeable gains after Wall Street ended February on a more optimistic note.

Positive data from Chinese factories also contributed to the upbeat sentiment, setting a strong foundation for trading in March.

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

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

In Tokyo, the Nikkei 225 climbed 1.4% to 37,662.14. South Korean markets were closed for a holiday, but the S&P/ASX 200 in Australia saw a gain of 0.6%, reaching 8,220.80.

Conversely, Taiwan’s Taiex fell by 1.4%, and Thailand’s SET decreased by 0.7%.

Surveys of Chinese factory managers showed improvements in February, with new orders increasing as companies hastily adapted to beat rising tariffs on exports to the United States, where the Trump administration has raised import duties on Chinese products to 20%.

On Wall Street last Friday, the S&P 500 jumped by 1.6% to 5,954.50, the Dow Jones Industrial Average gained 1.4% to reach 43,840.91, and the Nasdaq composite rose 1.6% to 18,847.28.

Previously, the S&P 500 had fallen in five out of the previous six days due to disappointing economic reports and concerns regarding President Trump’s tariffs, disrupting the index’s recent climb to an all-time high.

Stocks tied to the artificial intelligence sector faced sharp declines, and Bitcoin had dropped over 20% from its peak.

On Friday, Nvidia bounced back with a 4% increase after an 8.5% drop the previous day, significantly propelling the S&P 500 higher. On early Monday, Bitcoin was trading at $92,760, up from around $84,000 on Friday.

The market's rise followed an economic report that reflected both positive and negative aspects. Inflation ached somewhat, aligning with economists’ expectations based on a crucial measure monitored by the Federal Reserve. This news is regarded positively across markets, potentially allowing the Fed room to lower its main interest rate later in the year.

The Fed has maintained interest rates so far this year following sharp cuts late last year, largely due to inflation concerns.

Another report indicated that U.S. households reduced their spending in January, likely affecting a key support for the economy amid high interest rates and potential recession signs.

While inflation remains elevated compared to last year, there are worries that Trump's tariffs and policies could exacerbate living costs.

Market players are hopeful that the tariff discussions are primarily a negotiation tactic by Trump, suggesting he might ease them to mitigate global economic risks.

However, various reports indicate these discussions have led consumers to brace for higher future inflation. At some point, such concerns might influence consumer behavior, impacting the economy negatively even without tariffs.

The various uncertainties surrounding tariffs, deregulation, and other potential changes could mean that if the market does not observe Trump adopting more business-friendly policies, trust may continue to decline, as noted by economists from Bank of America.

Much of the decline in household spending in January could be attributed to harsh winter weather and other irregularities, yet it followed signs of slowing U.S. economic growth, which had been strong as of late 2024.

In other trading news early Monday, U.S. benchmark crude oil gained 42 cents to $70.18 per barrel, and Brent crude increased by 43 cents to $73.24 per barrel.

The U.S. dollar decreased to 150.46 Japanese yen from 150.72 yen. The euro rose to $1.0420, compared to $1.0402 previously.

Asian, Shares, Investments