TOKYO (AP) - Japan's benchmark Nikkei 225 index experienced a decline of approximately 1% on Tuesday, occurring after a U.S. national holiday. Most Asian markets remained closed in observance of the Lunar New Year holidays, impacting overall trading sentiment.
U.S. futures showed a downward trend, with oil prices reflecting mixed movements. Additionally, the prices for precious metals such as gold and silver experienced a decrease. Weak economic data released on Monday has negatively affected market sentiment in Tokyo. Notably, tech giant SoftBank Group saw a significant decline of 6.2%, which contributed to the downward pressure on shares. This decline comes in the aftermath of a substantial rally following a decisive victory for Prime Minister Sanae Takaichi's ruling party in the February 8 general election.
By midday, the Nikkei 225 index registered a 1% decrease, settling at 56,237.65. Traders were likely capitalizing on profits from recent gains that propelled the Nikkei to record highs. Polls indicate a gradual decline in Takaichi's popularity, as optimism over potential economic revival led by her plans for increased government spending and tax cuts is waning.
In contrast, the Australian S&P/ASX 200 index posted a gain of 0.3%, reaching 8,964.10. Meanwhile, India's Sensex saw a slight decrease of 0.1%, and Thailand's SET index fell by less than 0.2%. European stocks closed mixed on Monday, and trading in the U.S. market was halted for Presidents Day. U.S. markets are set to reopen on Tuesday, following a relatively quiet trading day.
On the previous Friday, the S&P 500 had edged up by less than 0.1%, attempting to recover from one of its most significant losses since Thanksgiving. The Dow Jones Industrial Average saw a marginal increase of 0.1%, while the Nasdaq composite slipped by 0.2%. The fluctuations in share prices are attributed to the varying levels of investor confidence regarding substantial investments in artificial intelligence. Market participants are also closely monitoring inflation trends and their potential impacts on interest rates.
In terms of early Tuesday market activity, benchmark U.S. crude oil prices increased by 65 cents to $63.54 per barrel. Conversely, Brent crude, the international standard, decreased by 29 cents to $68.36 per barrel. The U.S. dollar depreciated to 153.17 Japanese yen, down from 153.51 yen, while the euro declined to $1.1841, down from $1.1852.
Precious metals also saw declines, with gold prices dropping by 1.4% and silver prices decreasing by 3.4%. Bitcoin followed suit, experiencing a drop of 0.6%, trading at approximately $68,500.
