Asia’s major markets began the week on a positive note though traders remained on edge over the Federal Reserve’s plans to hike interest rates to cap surging inflation.
The Nasdaq led the strong finish for US equities on Friday thanks to a 7% bump for heavyweight Apple, which posted eye-watering fourth quarter profits that lifted optimism about consumer spending and the economic recovery.
And that strong performance, which was also helped by strong US economic data, filtered through to Asia on Monday, though trade was thinned by investors winding down ahead of the three-day Lunar New Year break that starts Tuesday.
Tokyo, Hong Kong, Manila and Mumbai jumped more than 1%, while there were also gains in Singapore, Wellington, Bangkok and Jakarta, though Sydney edged down. Shanghai, Seoul and Taipei were closed.
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The benchmark Nikkei 225 index gained 1.07%, or 284.64 points, to end at 27,001.98, while the broader Topix index rose 1.01%, or 19.04 points, to 1,895.93.
The Hang Seng Index jumped 1.07%, or 252.18 points, to 23,802.26 as investors finished early before heading off on a three-day Lunar New Year break.
The gains followed a period of upheaval across world markets as the Fed readies to withdraw the vast financial support put in place at the start of the pandemic, which has been a key driver of a near two-year equity rally.
And while further volatility is expected as the bank lifts borrowing costs, commentators remain upbeat.
Still, observers continue to debate the Fed’s likely next move as inflation sits at a four-decade high, with some saying it could hike up to seven times before 2023, with an initial 50 basis point move in March.
Oil prices climbed more than 1% on expectations that demand will continue as economies re-open and people start travelling again, while worries about a Russian invasion of Ukraine fed fears about possible supply disruptions.
Analysts said that if Russia sends troops into the country, crude prices could top $100 for the first time since 2014.
Key figures around 0610 GMT
Tokyo > Nikkei 225: UP 1.1% at 27,001.98 (close)
Hong Kong > Hang Seng Index: UP 1.1% at 23,802.26 (close)
Shanghai > Composite: Closed for a holiday
New York > Dow: UP 1.7% at 34,725.47 (Friday close)
London > FTSE 100: DOWN 1.2% at 7,466.07 (Friday close)
- AFP with additional editing by Sean O’Meara
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