Asia report: Markets mixed in holiday-thinned trading

(Sharecast News) - Asian markets were in a mixed state on Tuesday in holiday-thinned trade, while oil prices edged higher ahead of US-Iran nuclear negotiations in Geneva later in the day.

Trading volumes were light, with mainland China, Hong Kong, Singapore, Taiwan and South Korea closed for Lunar New Year holidays, and US markets having been shut on Monday for Presidents' Day.

As Patrick Munnelly, market strategy partner at TickMill, noted, "US equity futures took a hit as Wall Street investors returned from their long Presidents' Day weekend, signaling that the recent slump in technology stocks might not be over just yet."

He added that "across Asia, stocks dipped by 0.2% in light trading as several major markets, including China and Hong Kong, remained closed for Lunar New Year celebrations," while "geopolitical tensions in the Middle East are once again grabbing headlines, adding to market jitters."

In other global developments, Munnelly highlighted that "Iranian foreign minister Abbas Araghchi met with the head of the UN's nuclear watchdog in Geneva on Monday - this meeting comes ahead of a pivotal second round of nuclear negotiations with US officials."

Japan markets fall on back of Monday's GDP data

In Japan, the Nikkei 225 fell 0.42% to 56,566.49, while the broader Topix declined 0.68% to 3,761.55.

Japan Steel Works dropped 5.39%, SoftBank Group lost 5.1% and NEC Corporation slid 4.67%.

Sentiment remained fragile after data on Monday showed the economy grew an annualised 0.2% in the fourth quarter, far below the 1.6% gain forecast, as government spending dragged on activity.

The weak figures highlighted the challenges ahead for prime minister Sanae Takaichi and were seen supporting her push for more aggressive fiscal stimulus.

The Bank of Japan next meets on rates in March, with traders pricing only a slim chance of a hike, while economists polled by Reuters last month expected policymakers to wait until July before tightening again.

Broader risk appetite also remained constrained by developments in the US, with Munnelly observing that "futures tied to the S&P 500 dropped 0.5%, continuing their downward trend from the past two weeks, which wiped out any year-to-date gains for the index".

"Meanwhile, Nasdaq 100 futures slid 0.9%, extending the tech-heavy index's three-week losing streak, leaving it roughly 2% lower for the year," as "shifting sentiment around artificial intelligence is stirring up uncertainty, with the so-called 'AI panic trade' rippling beyond the tech sector."

Sydney in the green as investors digest RBA minutes

Australian shares bucked the softer regional tone, with the S&P/ASX 200 rising 0.24% to 8,958.90.

JB Hi-Fi jumped 8.13%, Pro Medicus gained 7.69% and A2 Milk Company advanced 6.26%.

Minutes from the Reserve Bank of Australia's latest meeting showed policymakers believed inflation would have remained stubbornly high had they not raised interest rates earlier this month, and that they were not yet certain whether further tightening would be required.

Across the Tasman Sea in New Zealand, the S&P/NZX 50 fell 0.66% to 13,031.62.

Synlait Milk dropped 6.12%, Pacific Edge lost 4.55% and Contact Energy declined 4.07%.

Greenback relatively steady against regional currencies, oil higher

Currency markets were steady overall, with the dollar last down 0.32% on the yen to trade at JPY 152.98, as it strengthened 0.08% against the Aussie to AUD 1.4152 and fell 0.25% on the Kiwi to change hands at NZD 1.6535.

Oil prices were higher, with Brent crude futures last up 0.12% on ICE at $68.73 per barrel, and the NYMEX quote for West Texas Intermediate ahead 1.51% at $63.84.

Reporting by Josh White for Sharecast.com.