World Shares Mostly Advance While Japan Falls Ahead Of Lunar New Year Holidays

Global equities showed resilience at the start of the week, with most Asian shares advancing despite thin trading ahead of Lunar New Year holidays. However, Japan’s Nikkei index fell as disappointing economic data weighed on investor sentiment.  

According to reports, Japan’s economy grew at an annualized rate of just 0.2 percent in the October–December quarter, far below forecasts of 1.6 percent. The weaker growth raised concerns about the country’s recovery momentum and increased expectations of fiscal stimulus measures from Prime Minister Sanae Takaichi’s government.  

Meanwhile, several major markets including China, South Korea, and Taiwan remained closed for the Lunar New Year, while Hong Kong and Singapore operated on shortened sessions. The closures limited trading activity and global liquidity, with U.S. markets also shut for Presidents’ Day.  

Key highlights from the announcement include  

• Most Asian shares advanced despite thin trading sessions  
• Japan’s Nikkei slipped on weak GDP growth data  
• China, South Korea, and Taiwan markets closed for Lunar New Year  
• Hong Kong and Singapore operated half-day trading sessions  
• U.S. markets closed for Presidents’ Day, reducing global liquidity  
• Gold prices declined amid subdued trading activity  

Analysts note that while holiday closures temporarily dampen trading volumes, the broader outlook for equities remains supported by strong corporate earnings and investor optimism in technology and infrastructure sectors. Japan’s economic slowdown, however, could pose challenges for regional growth in the near term.  

Sources: Associated Press, CNBC, WTOP, Times of India