Asian stock markets showed mixed results on Monday, following a broad decline in U.S. markets last Friday that wrapped up a holiday-shortened week.
In Tokyo, the Nikkei 225 index experienced a 1% dip, settling at 39,894.62. The Japanese yen weakened slightly, with the dollar rising to 157.93 yen compared to 157.75 yen the previous day. As Japan kicked off its New Year celebrations, the Tokyo market concluded trading for 2024 with a year-end ceremony.
On a brighter note, South Korea’s Kospi index gained 0.2% to reach 2,409.91. However, Jeju Air Co. faced a significant setback with its shares dropping 9% after a tragic incident involving one of its planes, which skidded off a runway, crashed into a wall, and caught fire, leading to the loss of 179 lives.
This unfortunate event adds to the challenges faced by Boeing this year, which has already dealt with strikes, safety issues, and declining stock values.
Political issues are also stirring in South Korea, as authorities have sought a court warrant to detain impeached President Yoon Suk Yeol over his controversial martial law decree, which is under investigation for possible rebellion.
In Hong Kong, the Hang Seng index remained steady at 20,090.30, while the Shanghai Composite gained 0.2% to 3,407.33. Australia’s S&P/ASX 200 dropped 0.3% to 8,235.00.
Back in the U.S., the S&P 500 fell by 1.1% to 5,970.84, with nearly 90% of its stocks losing value. Despite this decline, the index managed to maintain a modest weekly gain of 0.7%. The Dow Jones Industrial Average decreased by 0.8% to 42,992.21, and the tech-heavy Nasdaq composite dropped 1.5% to 19,722.03.
The downturn was exacerbated by significant losses in major technology stocks known as the “Magnificent 7,” which can significantly influence market trends due to their large market capitalization. Retailers also saw declines, with Amazon and Best Buy each falling by 1.5%.
Despite the drop on Friday, the S&P 500 has been performing well overall, with expectations of a 25% gain for 2024, marking the second consecutive year of over 20% growth, a trend not seen since 1997-1998. This performance has been supported by positive economic indicators, including sustained consumer spending and a robust labor market, although inflation remains a concern.
Looking ahead, there are uncertainties surrounding economic policies as President Donald Trump takes over, with his preference for tariffs and other measures raising worries about potential inflation increases, U.S. national debt, and challenges for international trade.
In commodities, U.S. benchmark crude oil dipped 45 cents to $70.55 per barrel, while Brent crude fell 7 cents to $73.72 per barrel. Meanwhile, the euro had a slight increase against the dollar, trading at $1.0429.
