Asia report: Nikkei closes above 40k on mixed day for region

(Sharecast News) - Equities across the Asia-Pacific region showed a mixed performance on Monday, with Japan's Nikkei 225 leading the gains by closing above the psychologically-significant 40,000 mark, setting a new record high. The surge came in the wake of fresh all-time highs on Wall Street, set by the S&P 500 and the Nasdaq Composite on Friday.

"Asian equities and European stock futures are on the rise, echoing last week's strong performance on Wall Street," said TickMill market analyst Patrick Munnelly.

"Expectations of potential stimulus measures from Chinese authorities at the 14th National People's Congress contribute to positive sentiment.

"The annual session ... begins focusing on government proposals to support the economy, including setting a potentially challenging growth target for 2024, possibly unchanged from 5% in 2023."

Nikkei leads gains on mixed day for region

In Japan, the Nikkei 225 rose by 0.5% to reach 40,109.23, while the broader Topix index experienced a slight dip of 0.12% to settle at 2,706.28.

Renesas Electronics, Isetan Mitsukoshi Holdings, and Sumco were among the top performers on Tokyo's benchmark, posting gains of 4.87%, 4.56%, and 3.98%, respectively.

China's markets also saw modest gains, with the Shanghai Composite up by 0.41% to close at 3,039.31, and the Shenzhen Component edging up by 0.04% to 9,438.24.

Notable performers in Shanghai included Grace Fabric Technology, up 10.06%, and Epoxy Base Electronic Material, recording gains of 10.04%.

Hong Kong's Hang Seng Index showed marginal growth of 0.04%, reaching 16,595.97.

Key contributors to the uptick in the special administrative region were WuXi AppTec, WuXi Biologics, and Techtronic Industries, posting gains of 12.54%, 11.7%, and 9.57%, respectively.

Meanwhile, South Korea's Kospi index surged by 1.21% to 2,674.27, led by notable gains from KB Financial Group, up 8.66%, and Samsung Life, which rose 7.22%.

In contrast, Australia's S&P/ASX 200 experienced a slight decline of 0.13%, closing at 7,735.80, with Cettire and Pro Medicus among the top losers, with drops of 6% and 3.56%, respectively.

New Zealand's S&P/NZX 50 also saw a marginal decrease of 0.17%, settling at 11,724.21.

The biggest decliners in Wellington included Vital Healthcare Property Trust, down 4.28%, and Investore Property, which fell 3.64%.

In currency markets, the dollar was last up 0.15% on the yen to trade at JPY 150.35, while it saw a 0.07% increase against the Aussie to AUD 1.5332, and edged up 0.05% on the Kiwi to change hands at NZD 1.6385.

On the oil front, Brent crude futures were last up 0.05% on ICE at $83.59 per barrel, while the NYMEX quote for West Texas Intermediate saw a marginal decline of 0.04% to $79.94.

Industrial output declines in Korea, while retail sales rise

In economic news, South Korea saw a downturn in industrial output for the second consecutive month in January, contrasting with an uptick in retail sales, according to fresh data.

Industrial output declined by 1.3% in January, following revised growth of 0.5% in the prior month.

The figure notably fell short of the expectations set by a Reuters poll, which had projected a 1% rise.

In contrast, South Korea's retail sector showed resilience, recording growth of 0.8% in January after a 0.8% decline in the prior month.

Reporting by Josh White for Sharecast.com.