Asian markets are showing positive momentum, largely driven by a recovery in tech stocks following developments around the Chinese AI model DeepSeek. Tokyo’s Nikkei index rose by 1.02%, boosted by semiconductor companies. Sony’s shares increased after Hiroki Totoki was promoted to CEO. In commodities, oil prices saw minor changes amid tariff discussions, while gold prices slightly declined. Most Asian exchanges remain closed for Lunar New Year celebrations, set to resume on February 5.
Asian Markets Show Positive Movement Amid Tech Recovery
On Wednesday, January 29, the limited Asian markets that are operational are showcasing a positive trend, buoyed by the rebound of technology stocks on Wall Street. This comes in the wake of the surprising developments surrounding the Chinese AI model DeepSeek, while many stock exchanges across Asia remain closed in observance of the Lunar New Year.
Tokyo’s Tech Sector Sees Gains
The Tokyo Stock Exchange experienced an uplift, with the prominent Nikkei index rising by 1.02% to close at 39,414.78 points. The broader Topix index also saw an increase of 0.68%, reaching 2,775.59 points.
Investor sentiment in Asia received a boost from the resurgence of tech stocks on the New York Stock Exchange the previous day, which followed a period of turbulence. American semiconductor giant Nvidia rebounded sharply, climbing 8.93% after a steep drop of nearly 17% earlier in the week. The introduction of the cutting-edge conversational agent by the Chinese startup DeepSeek unsettled investors, amplifying concerns about the semiconductor market. However, experts from Tokai Tokyo Intelligence suggest that while DeepSeek’s project highlights potential downsides, numerous industries could benefit from a more widespread adoption of technology.
Companies like Advantest, which manufactures semiconductor equipment and supplies Nvidia, saw a 4.36% gain, while Tokyo Electron and Fujikura, known for producing data center cables, rose by 2.34% and 1.67%, respectively.
Stephen Innes, an analyst at SPI Asset Management, remarked on the changing sentiment, noting that the prevailing view is that a more accessible AI could enhance technology adoption across various sectors.
Investors are now keenly observing the Federal Reserve’s upcoming interest rate decision and the earnings reports from major American corporations.
Leadership Changes at Sony
In notable corporate news, shares of Sony surged by 3.78% following the announcement of Hiroki Totoki’s promotion to CEO as part of a significant management restructuring. Totoki, who is currently the Chief Operating Officer, Chief Financial Officer, and President of Sony, will take over the role from Kenichiro Yoshida on April 1, while Yoshida will continue as Chairman of the Board.
Market Trends in Oil and Gold
In the commodities market, oil prices experienced a minor increase, influenced by statements from the White House regarding potential tariffs, amid ongoing scrutiny of Libyan export conditions. As of 06:26 GMT, American WTI crude was slightly down by 0.05% at $73.73, while North Sea Brent experienced a 0.17% decline to $77.36.
Regarding tariffs, the new White House spokesperson reaffirmed Donald Trump’s plans to impose them starting February 1 on imports from Mexico, Canada, the European Union, and China. Trump has threatened a 10% surcharge on Chinese goods, though he remains open to negotiations with Beijing. Such inflationary measures may compel the Federal Reserve to sustain higher interest rates for an extended period to manage inflation effectively.
In this context, the U.S. dollar showed a slight recovery against the Japanese yen, trading at 155.25 yen per dollar around 06:37 GMT.
Gold prices continued their upward momentum on Wednesday, with a minor decrease of 0.09%, trading at $2,761.11 per ounce around 06:39 GMT.
Observance of Lunar New Year
It is important to note that most Asian stock exchanges remain closed in observance of the Chinese New Year festivities and are expected to reopen on Wednesday, February 5.