China markets advanced for the second session in a row this week, and the Hang Seng index jumped to a three-year high amid hopes of easing of tensions between China and the U.S.
Japan's benchmark indexes closed up 1% after a week of tumultuous trading amid escalating global trade tensions. The yield on 10-year Japanese government bonds traded around 1.5%, the highest level since the 2008 financial crisis.
Bargain hunting supported the market advance in China and Hong Kong ahead of the policy announcements on Monday. The Hang Seng index erased weekly losses, and the mainland-focused index advanced nearly 2% in the week.
Benchmark indexes in Tokyo hovered near six-month lows as looming U.S. trade tariffs dampened investor sentiment. The yen retained an upward bias, and the yield on the 10-year Japanese bonds stayed at a 16-year high amid expectations of higher interest rates.
China indexes extended losses for the fifth consecutive session amid escalating trade tensions and constantly changing U.S. trade policy. The Two Sessions ended with a lack of a detailed plan to implement previously announced stimulus measures.
Japan's large corporations agreed to record wage hikes for the second consecutive year amid skilled labor shortages and rising cost of living. The yield on 10-year Japan government bonds rose to a record high amid rising expectations of a rate hike after the next policy meeting.
Investors turned cautious, and benchmark indexes in Hong Kong extended the decline to the fourth consecutive session amid escalating trade tensions and uncertain U.S. trade policy.
Japan's fourth quarter GDP growth was revised lower after private consumption stalled amid high cost of living. The Nikkei 225 Stock Average extended its losses to 15% from the peak in July as investors struggle to adjust to constantly changing U.S. trade policy.
Japan's nominal wages rose for the third year in a row in January, but real wages decreased for the second consecutive month. Japan's current account balance swung to a loss for the first time in two years.
Stock market indexes in China and Hong Kong turned lower after the release of two inflation reports. Consumer price inflation turned negative, and producer price deflation extended to the 29th consecutive month in February.
The Nikkei 225 Stock Average extended weekly losses to 1.5% following sharp losses in tech stocks and a broad sell-off sparked by weakness in New York. The yen extended its 2025 gain to 5% ahead of the Bank of Japan's rate decisions, pushing down the export-sensitive stocks.
Stock market indexes in Hong Kong trimmed weekly advance to over 4%, the best weekly rise in two months, after the government set an ambitious annual economic growth target of 5%.
Benchmark indexes in Tokyo extended gains for the second consecutive session, and export-driven stocks led gainers. The yen advanced amid hopes that the Bank of Japan will continue with its rate-hike campaign.
Benchmark indexes in China and Hong Kong advanced amid optimism about additional stimulus after the Beijing leadership set an ambitious economic annual growth target in 2025.
