China, Jan 23, (V7N) – Asian equities experienced a mostly positive trading session on Thursday, buoyed by a tech-driven rally on Wall Street after former President Donald Trump announced a substantial $500 billion investment plan focused on artificial intelligence infrastructure in the United States. Traders are now evaluating the implications of the new administration for the next four years.

Market Highlights

Shanghai led the gains, recovering from year-to-date losses as China introduced measures aimed at revitalizing its stock markets to support the struggling economy.

The initial days of "Trump 2.0" have been received positively by global investors, particularly as he refrained from immediately reinstating the aggressive trade policies from his previous term.

Trade Policy Concerns

Despite the optimism, there are looming concerns regarding potential tariffs that could affect China, the European Union, Canada, and Mexico as early as February 1.

Tech Sector Performance

Tech giants like Nvidia, Microsoft, and Arm propelled a surge in the New York markets. The S&P 500 index approached a record high following Trump’s announcement. Notably, SoftBank, which is part of the AI venture, saw its stock rise over 10 percent on Wednesday, with an additional 5 percent increase on Thursday, despite skepticism from Elon Musk regarding the financial backing of the project.

Tokyo's Nikkei 225 index rose by 0.5 percent to 39,830.11.

Shanghai Composite increased by 1.4 percent to 3,258.57.

Hong Kong's Hang Seng was up 0.5 percent at 19,873.70.

Sydney and Manila recorded losses, while Seoul experienced a significant decline due to economic concerns stemming from political instability.

The dollar strengthened against the yen ahead of the Bank of Japan's policy decision scheduled for Friday, with expectations of a third interest rate hike since March. Economic data suggests a supportive environment for such a move, particularly with rising core consumer prices and strong wage growth.

Key Figures Around 0230 GMT

Tokyo - Nikkei 225: UP 0.5 percent at 39,830.11

Hong Kong - Hang Seng Index: UP 0.5 percent at 19,873.70

Shanghai - Composite: UP 1.4 percent at 3,258.57

Euro/Dollar: DOWN at $1.0405

Pound/Dollar: DOWN at $1.2307

Dollar/Yen: UP at 156.51 yen

West Texas Intermediate: DOWN 0.4 percent at $75.17 per barrel

Brent North Sea Crude: DOWN 0.3 percent at $78.73 per barrel

New York - Dow: UP 0.3 percent at 44,156.73

London - FTSE 100: FLAT at 8,545.13

As the market continues to react to both political developments and economic policies, investors remain attentive to the evolving landscape.

END/BUS/RH/