Global markets saw a mostly positive trend on Friday, buoyed by strong performances from key companies and positive economic indicators. Wall Street's gains, led by Tesla, IBM, and Meta Platforms following robust profit reports, set a positive tone for world markets. European markets opened higher after the European Central Bank's decision to cut its key interest rate by a quarter-point to 2.75% on Thursday. Notably, Japan's Nikkei 225 index edged 0.2% higher, while Japan's core inflation rate exceeded the central bank's target, signaling potential interest rate hikes.
However, the South Korean Kospi fell by 0.8% as trading resumed after the holidays, with concerns over Chinese startup DeepSeek causing disruptions in the AI sector. Shares of major tech companies like SK Hynix and Samsung experienced declines. In contrast, Australia's S&P/ASX 200 advanced by 0.5%, showcasing varied market movements across the region.
The U.S. stock market witnessed positive movements, with the S&P 500, Dow Jones Industrial Average, and Nasdaq composite all posting gains. Meta Platforms' strong performance and focus on artificial intelligence initiatives contributed to market optimism, countering concerns raised by DeepSeek's AI developments.
While companies like Nvidia faced challenges amid the evolving AI landscape, Microsoft's slower-than-expected growth in its cloud computing business impacted its stock performance. Treasury yields remained stable following a report indicating solid economic growth at the end of 2024, albeit slightly below expectations.
Energy trading saw benchmark U.S. crude and Brent crude prices rising marginally. In currency trading, the U.S. dollar strengthened against the Japanese yen, while the euro experienced a slight decline against the dollar. Overall, market dynamics reflected a mix of positive corporate performances, economic indicators, and sector-specific challenges influencing investor sentiment.
