The Hang Seng Index rose by 2.46%in the week that ended on January 24, which continued the profit compared to the week before. The market sentiment with regard to Trump’s policy, a potentially less aggressive Fed, and Beijing’s policy steps stimulated the demand for listed shares from Hong Kong and mainland China.
The technology sector led the profits, with the Hang Seng Tech Index rising by 3.98%. Alibaba (9988) rose by 4.95%, while Baidu (9888) and Tencent (0700) achieved weekly profits of 3.69%and 2.91%respectively.
However, the problems in the Chinese home sector continued to influence the demand for real estate shares. The Hang Seng Mainland Properties Index fell by 2.05%.
The Chinese stock markets on the mainland closed the week positively. The CSI 300 and Shanghai Composite rose 0.54% and 0.33% respectively. President Trump’s tariff changes led to modest profits.
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Raw materials see mixed trends
Raw materials had a mixed week that ended on January 24. Gold extended its winning streak to four weeks and rose by 2.54% to end the week at $ 2,771. The expectations that Trump’s policy would stimulate inflation reinforced the position of gold as inflation cover.
The American tariff developments ensured that the mockery prices for iron ore rose 0.23% higher, while the prices for crude oil fell when investors responded to Trump’s plans to ask OPEC countries to lower oil prices.
ASX 200 is moving forward: banks and technology shares excel despite oil decrease
The Australian ASX 200 rose 1.19% in the week that ended on January 24 and thus improved for the third week. Banking and technology shares contributed to the profit. The S&P/ASX All Technology Index rose 3.38%.
The falling interest on US government bonds made the Australian banks more attractive for return -oriented investors. Striking risers included the National Australia Bank (NAB), which rose by 4.29%, while the Commonwealth Bank of Australia improved by 3.09%.
In the meantime, the Woodside Energy Group (WDS) fell by 4.93% due to concerns about the oil price.
Nikkei index is recovering through Trumps AI initiative and rate policy
In the week that ended on January 24, the Nikkei index rose by 3.26% despite a stronger Japanese yen. Trump’s rate policy and its focus on the AI and the technology sector neutralized the effects of an interest rate rise by the Bank of Japan and a decrease in the USD/JPY purple. The USD/JPY couple fell by 0.20% to 155.948 in the week.
On January 24, De BoJ increased the interest with 25 basic points to 0.50%. BoJ-Gouverneur Kazuo Ueda stated:
“The timing and pace of adjusting monetary support will depend on the economic and price developments at that time. We have no predetermined idea. During each policy meeting we will make a decision by looking at the economic and price developments and at the risks. ”
The Governor of the Boj was optimistic about wage growth, but at the same time signaled the uncertainty about the potential impact of American rates. The generally expected interest rate increase and the Forward Guidance ensured that the markets avoided a new Carry trade in the Yen.
Striking risers included the Softbank Group (9984), which increased by 16.30% in response to Stargate’s announcement. Tokyo Electron (8035) won 1.80%.
However, the stronger yen could weaken the profits and the valuations, which would put pressure on the Japanese export -coupled shares. Nissan Motor Corp. (7201) Fell by 0.78%.
Prospects for volatility: important events to keep an eye on this week
The markets are confronted this week with potential volatility, with the emphasis on Chinese figures, US economic indicators and the policy of the central banks. Renewed tariff threats or aggressive monetary views could temper sentiment. However, targeted Chinese incentive measures can compensate for the downward risks. For the ASX 200, inflation data will be crucial in shaping the interest path of the RBA.
Traders must keep a close eye on economic trends in order to be able to navigate the changing dynamics.