Stock market today: Asian benchmarks trade mostly higher as investors continue to eye Trump

Currency traders monitor screens near a display showing the Korea Composite Stock Price Index (KOSPI) and the U.S. dollar to South Korean won exchange rate at the foreign exchange dealing room of KEB Hana Bank headquarters in Seoul, South Korea, on Monday, February 17, 2025. (AP Photo/Ahn Young-joon)

By  NEWS BLEND 360

Updated 10:58 PM EST, February 16, 2025

TOKYO (NB360) — Asian markets mostly advanced on Monday as investors monitored economic indicators and policy developments from President Donald Trump, both of which are expected to influence upcoming decisions by global central banks.

Japan’s Nikkei 225 index increased in early trading after the Cabinet Office announced that the economy expanded at an annual rate of 2.8% in October-December, surpassing expectations, driven by consistent exports and moderate consumer spending.

However, the index quickly retreated before recovering to remain largely unchanged, rising by less than 0.1% in morning trading at 39,164.87.

On a quarter-to-quarter basis, the world's fourth-largest economy expanded by 0.7% for the third consecutive quarter. Japan recorded its fourth consecutive year of growth, achieving a modest 0.1% increase last year in seasonally adjusted real gross domestic product, which assesses the value of a nation's goods and services.

In other regional markets, Australia's S&P/ASX 200 dropped 0.6% to 8,503.70. South Korea's Kospi jumped 0.8% to 2,610.91. Hong Kong's Hang Seng rose 0.6% to 22,752.20, while the Shanghai Composite increased by 0.2% to 3,352.01.

Wall Street concluded last week slightly retreating from its peak following mixed earnings reports from major companies, such as Airbnb and Wynn Resorts.

The S&P 500 barely moved, slipping by less than 0.1%, a day after rallying to within 0.1% of its record set last month. The Dow Jones Industrial Average fell by 165 points, or 0.4%, while the Nasdaq composite increased by 0.4%.

The S&P 500 concluded its first winning week in three weeks, partly due to reports indicating that companies achieved higher-than-expected profits at the end of 2024. These results have helped the market navigate concerns about rising interest rates and persistent inflation.

Overall, the S&P 500 decreased by 0.44 to 6,114.63. The Dow Jones Industrial Average fell 165.35 points to 44,546.08, while the Nasdaq composite gained 81.13 to 20,026.77.

Last week included some disappointing reports showing that inflation unexpectedly increased last month. This persistent high inflation not only pressures U.S. household budgets but also likely keeps the Federal Reserve from lowering interest rates.

Inflation might face more upward pressure from tariffs recently announced by Trump. However, analysts now believe Trump may ultimately avoid sparking a severe global trade war.

For instance, his latest tariff announcement won't fully take effect for several weeks, allowing time for negotiations between Washington and other countries.

In the bond market, the yield on the 10-year Treasury dropped to 4.47% on Friday from 4.54% late Thursday. It has been fluctuating significantly since the Federal Reserve started reducing its main interest rate.

The Fed cautioned at the end of 2024 that it might not reduce rates as much in 2025 due to concerns about inflation remaining high. Its aim is to maintain inflation at 2%, and lowering rates can further fuel inflation.

In Monday’s energy trading, benchmark U.S. crude decreased by 17 cents to $70.57 per barrel. Brent crude, the international benchmark, dropped 13 cents to $74.61 per barrel.

In currency trading, the U.S. dollar fell to 151.60 Japanese yen from 152.25 yen. The euro rose to $1.0594 from $1.0495.

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NB360 Writer Belinda Foster contributed.