Asian markets traded mixed on Tuesday as investors weighed a choppy lead from Wall Street and positioned for a key U.S. inflation release that could reshape expectations for interest-rate policy. Japan’s benchmark surged to fresh multi-decade highs in post-holiday trade, while Australia edged higher, supported by gains in mining and bank stocks despite a string of weaker corporate results.
Key takeaways
- Australia’s S&P/ASX 200 rose to about 7,622—up roughly 0.1%—helped by strength in miners and major lenders.
- Japan’s Nikkei 225 jumped about 2.4% toward the 37,800 area, led by index heavyweights, technology shares and exporters.
- U.S. consumer price inflation (January) is the near-term catalyst across the region, with markets expecting clearer signals on the rate outlook.
- Stock-specific earnings reactions drove pockets of volatility in Australia, including sharp moves in several large and mid-sized companies.
- Gold and oil stocks were mixed, reflecting investor selectivity ahead of the macro data.
What drove the move
Macro focus turned to U.S. inflation. Investors across Asia remained cautious ahead of the release of U.S. consumer price inflation for January, a data point that can directly influence expectations for the Federal Reserve’s path for interest rates. That macro uncertainty came on top of a mixed Wall Street session overnight, where major U.S. indexes finished narrowly mixed after trading in and out of positive territory.
In Australia, sector leadership met earnings headwinds. The S&P/ASX 200 climbed modestly after closing lower on Monday. The index stayed above the 7,600 level, with gains concentrated in mining and financials. Traders also continued to digest disappointing corporate earnings announcements, which contributed to individual stock moves across multiple industries.
Market reaction in Australia
The benchmark S&P/ASX 200 was up roughly 0.1% to 7,622.50, after swinging between 7,599.00 and 7,632.70 earlier in the session. The broader All Ordinaries Index rose slightly to 7,867.60.
- Miners: BHP Group and Rio Tinto were slightly higher, while Mineral Resources gained more than 1%. Fortescue Metals was marginally lower.
- Oil and gas: Origin Energy rose by nearly 1%, and Beach Energy added more than 2%, while Woodside Energy declined by more than 1% and Santos edged down slightly.
- Tech: WiseTech Global fell nearly 2%, Zip declined by about 3%, and Xero was slightly lower. Block (after the Afterpay acquisition) rose more than 3%, while Appen added about 1.5%.
- Gold miners: Most were higher, including Evolution Mining, Resolute Mining and Northern Star Resources, each up more than 1%. Newmont rose about 2%, while Gold Road Resources advanced modestly.
- Banks: Commonwealth Bank and National Australia Bank gained about 1% each. ANZ Banking rose by more than 1% and Westpac added about 0.5%.
Earnings-driven stock moves were pronounced. Seek shares plunged nearly 10% after the job listing company reported a decline in first-half profit as customer volumes slipped back to pre-pandemic levels. Breville fell about 13% despite a 6.7% rise in profit, with the market reacting to a subdued consumer backdrop. Seven West Media dropped more than 9% after disclosing a 53% fall in TV advertising revenue. Strike Energy slumped more than 26% after the South Erregulla-3 site in the Perth Basin failed to flow. On the positive side, Temple & Webster rose nearly 12% after revenue increased 23% supported by growth in repeat and new customers.
In currencies, the Australian dollar was trading around 0.652.
Japan’s rally powers regional momentum
Japan led the gains across Asia. The Nikkei 225 surged about 2.4% in post-holiday trading, adding roughly 900 points to hover just below the 37,800 mark and move to fresh 34-year highs. The jump was broad-based, with gains spanning most sectors, led by index heavyweights, exporters and technology names.
The benchmark Nikkei 225 closed the morning session at 37,798.89, up 901.47 points (2.44%), after reaching a high of 37,802.51. Japan’s shares finished sharply higher on Monday ahead of Tuesday’s holiday.
- Financials and tech: SoftBank Group gained more than 7%, while Fast Retailing rose slightly. In semiconductors, Tokyo Electron climbed by more than 10%, Screen Holdings advanced nearly 3%, and Advantest gained about 1%.
- Banking: Sumitomo Mitsui Financial rose by more than 1%, and Mitsubishi UFJ Financial and Mizuho Financial added around 1.5%.
- Automakers and exporters: Toyota advanced by more than 2% while Honda was slightly lower. Major exporters were mixed, with Sony up more than 3%, Canon adding nearly 2%, and Mitsubishi Electric gaining about 3%. Panasonic also rose by more than 2%.
Notable decliners included JGC Holdings, which fell nearly 19%, and Nippon Paper Industries, down about 14%. Mazda Motor slid more than 8%, while Olympus and Kobe Steel dropped by about 4% each.
The U.S. dollar traded in the lower 149 yen range on Tuesday, according to market reporting.
Elsewhere in Asia and key global backdrop
South Korea rose about 1.2%, while Singapore and Malaysia were up about 0.2% and 0.5%, respectively. New Zealand and Indonesia fell roughly 0.5% and 0.8%. Markets in China, Hong Kong and Taiwan remained closed for Lunar New Year holidays.
On Wall Street, equities ended narrowly mixed. The Nasdaq declined by about 0.3% and the S&P 500 edged down about 0.1%, while the Dow advanced about 0.3% to a record closing high. European markets generally moved higher, with Germany’s DAX and France’s CAC 40 up roughly 0.7% and 0.6%, respectively.
In energy trading, crude oil futures settled roughly flat on Monday as demand concerns offset potential supply disruptions. West Texas Intermediate for March finished at $76.92 a barrel.
Heading into the next session, markets will be watching the U.S. CPI release for January and any resulting shifts in rate expectations. In the background, investors will also monitor follow-through from Japan’s rally and how Australian earnings reactions evolve across sectors.
