Global markets showed a mixed performance on Friday, with France's CAC 40 rising by 0.2% and Germany's DAX dipping by 0.3%. The FTSE 100 in Britain fell slightly, while U.S. shares were expected to trend lower. In Japan, the Nikkei 225 edged up by 0.3%, benefiting from a weak yen which is advantageous for export-reliant manufacturers.
In currency trading, the U.S. dollar strengthened against the Japanese yen, while the euro saw a slight decline. Japan's core consumer price index, excluding volatile fresh food prices, increased by 3.2% in January compared to the same period last year. This inflation rate plays a crucial role in the Bank of Japan's interest rate decisions, which currently stand at 2%.
Market expectations are leaning towards rate hikes in Japan due to various factors such as hawkish comments from BoJ officials, strong GDP data, and rising CPI. Australia's S&P/ASX 200 and South Korea's Kospi experienced minor fluctuations, while Hong Kong's Hang Seng surged by 4.0% driven by Alibaba's robust financial results.
Alibaba Group Holding, a Chinese e-commerce giant, reported significant revenue growth and net profit, leading to an 8.1% increase in its New York-traded stock. The company plans to heavily invest in artificial intelligence and cloud computing infrastructure. Chinese tech firms are gaining global attention, with DeepSeek unveiling a new AI model comparable to those of U.S. companies like OpenAI.
On the energy front, benchmark U.S. crude and Brent crude prices experienced slight declines in trading. Overall, the market landscape reflects a mix of positive developments and potential challenges across various sectors and regions.
