Precise Investors Editorial Team
China, South Korea, Taiwan were among the markets that were closed, leaving currencies and bonds flat
Asian shares quietly consolidated recent hefty gains on Monday as the Lunar New Year holiday made for thin trading, while dismal economic data out of Japan took some air out of that booming market.
China, South Korea, Taiwan were among the markets that were closed, leaving currencies and bonds flat, but precious metals under latest pressure.
Japan reported its economy grew a 0.2% annualised in the December quarter, far below the 1.6% gain forecast as government spending dragged on activity.
The disappointing figures underline the tough task ahead for Prime Minister Sanae Takaichi and should support her push for more aggressive fiscal stimulus.
Nikkei edged up 0.2%, having jumped 5% last week. MSCI’s broadest index of Asia-Pacific shares outside Japan firmed 0.4%.
South Korea’s tech-heavy market surged 8.2% last week, while Taiwan jumped nearly 6% for the week.
Our fear in Asia is that if the mega-cap technology companies announce a pause in capital expenditure, that might lead to a sharp correction in memory stocks that have rallied sharply in markets like Korea this year, said Nick Ferres, chief investment officer at Vantage Point.
While rotation is likely to favour emerging markets, we are becoming increasingly cautious on memory stocks in Korea and Taiwan following their exceptional performance and re-rating, he added.
For Europe, EUROSTOXX 50 futures gained 0.1%, while DAX futures and FTSE futures rose 0.2%.
S&P 500 futures added 0.2%, while Nasdaq futures advanced 0.1%.
Some data of the week are not out until Friday when surveys of global manufacturing hit.
Median forecasts are for annualised growth of 3.0%, down from 4.4% the previous quarter but still solid.
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