(Sharecast News) - Asia-Pacific markets traded mixed on Friday as investors reacted to a pullback on Wall Street, where the S&P 500 retreated after the latest results from Nvidia and Salesforce failed to lift broader sentiment.
Major AI-linked stocks in the region, including Samsung Electronics, SK Hynix and SoftBank, came under pressure following the US tech-led weakness, with Patrick Munnelly, market strategy partner at TickMill, noting that "the so-called 'AI fright trade' rattled Wall Street, driving investors to seek opportunities in regions viewed as more resilient to the risks of technological disruption."
Munnelly added that "in February, Asian and European stock markets took the lead, leaving US indexes trailing behind," highlighting that "the MSCI Asia Pacific Index surged by an impressive 7.1% this month, achieving its best February performance since its creation in 1998," in contrast to faltering Wall Street indices and futures pointing to further declines.
Tokyo shares rise as investors digest fresh data
In Japan, the Nikkei 225 edged up 0.16% to 58,850.27, while the broader Topix climbed 1.5% to 3,938.68.
Gains were led by Sumitomo Metal Mining, up 11.28%, Dowa Holdings, which advanced 10.63%, and JGC Holdings Corporation, up 8.02%.
Economic data showed industrial production rose 2.2% month-on-month in January, reversing a 0.1% decline in December but missing forecasts for a 5.3% increase.
Output rose 2.3% year-on-year, slowing from 2.6% previously, as motor vehicles production jumped 9.1%, plastic products increased 8.1% and chemicals excluding inorganic, organic chemicals and medicine rose 7.4%.
Housing starts fell 0.4% year-on-year, easing from a 1.3% drop and beating expectations for a 1.6% decline, with owner-occupied homes up 6.6% and prefabricated housing up 5.1%, while built-for-sale housing dropped 4.8%.
Retail sales rose 1.8% year-on-year, rebounding from a 0.9% fall and beating expectations for a 0.4% decline, while rising 4.1% month-on-month, the strongest pace since September 2019.
Sales were driven by machinery and equipment, up 12.4%, automobiles, up 9.6%, and gains across department stores, food and beverages, and pharmaceuticals, though fuel and clothing sales declined.
China mixed as Kospi falls
In mainland China, the Shanghai Composite rose 0.39% to 4,162.88, supported by a 20% surge in Beijing Worldia Diamond Tools and 10.02% gains in Yuanli Chemical Group and Nanhua Futures.
The Shenzhen Component slipped 0.06% to 14,495.09.
Hong Kong's Hang Seng Index gained 0.95% to 26,630.54, with Sun Hung Kai Properties rising 7.12%, WuXi Biologics up 5.07% and China Shenhua Energy advancing 4.03%.
South Korea underperformed on the day, with the Kospi 100 falling 1.18% to 7,192.68.
DB Insurance Co dropped 10.9%, LG Display lost 9.53% and Hanjinkal declined 9.39%.
However, Munnelly noted that "South Korea emerged as a standout performer in Asia, with its Kospi Index soaring nearly 20% in February alone," adding that "as a bellwether for investments in artificial intelligence technologies, the Kospi has also claimed the title of the world's top-performing index this year, boasting an extraordinary 49% rise year-to-date."
Sydney, Wellington manage small gains
In Australia, the S&P/ASX 200 added 0.25% to 9,198.60.
Block Inc surged 27.83%, while Lynas Rare Earths gained 10.09% and Iluka Resources rose 9.05%.
Across the Tasman Sea, New Zealand's S&P/NZX 50 advanced 0.38% to 13,722.97, led by Vista Group International, up 10.56%, Serko, up 3.59%, and Heartland Group Holdings, which gained 2.8%.
Dollar in the red as oil prices steady
In currency markets, the dollar slipped 0.11% against the yen to trade at JPY 155.96, as it fell 0.09% against the Aussie to AUD 1.4062 and eased 0.17% on the Kiwi to change hands at NZD 1.6701.
In fixed income, Munnelly said "US Treasury yields edged lower, with the 10-year yield dipping by 1 basis point to 3.99%, its lowest level since late November."
Commodities also drew attention.
Oil prices were higher, with Brent crude futures last up 1.43% on ICE at $71.76 per barrel, and the NYMEX quote for West Texas Intermediate also rising 1.43%, to $66.14.
Munnelly noted that "oil prices steadied after the US and Iran agreed to resume nuclear talks next week following discussions on Thursday," though "heightened tensions due to a significant deployment of US military forces in the Middle East kept traders on edge."
Reporting by Josh White for Sharecast.com.
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