Asian Shares Decline as Tokyo Remains Closed for New Year

TOKYO (AP) — Asian stocks mostly fell on Thursday, reflecting worries among investors as Tokyo's primary stock market was closed for the New Year’s holiday.

Investor sentiment in the region turned cautious, primarily driven by concerns regarding potential policy shifts following President Donald Trump’s recent actions. Additionally, ongoing political uncertainty in South Korea contributed to a general atmosphere of hesitation in the markets.

In Australia, the S&P/ASX 200 index showed a slight increase of 0.4% amidst early trading, reaching a level of 8,193.90. Meanwhile, South Korea's Kospi index dipped by nearly 0.1%, settling at 2,397.54. In Hong Kong, the Hang Seng index fell by 1.3% to 19,807.19, and the Shanghai Composite index dropped by 0.8% to 3,325.56.

U.S. stock markets remained closed on Wednesday due to the New Year’s Day holiday.

Later on Thursday, investors anticipate updated U.S. construction spending data for November, while manufacturing statistics for December are expected to be released on Friday.

In a recent announcement, the New York Stock Exchange and Nasdaq have planned to suspend trading on Jan. 9 in memory of former President Jimmy Carter, who passed away recently at the age of 100. This marks a traditional period of mourning observed by Wall Street in honor of its leaders.

On the previous trading day, U.S. stock indexes ended mostly lower, marking a disappointing finish on what had been a notable year for the markets. The S&P 500 index experienced a 0.4% decline after losing an early gain, concluding at 5,881.63. Despite this drop, the S&P 500 achieved an impressive annual gain of 23.3%, thanks to 57 record highs set throughout 2024. This performance marked its second consecutive year with gains exceeding 20%. Previous to this, such a back-to-back achievement had not occurred since 1998.

Meanwhile, the Dow Jones Industrial Average experienced a slight decrease of 0.1%, closing at 42,544.22, while the Nasdaq composite fell by 0.9% to finish at 19,310.79.

The rise of major technology companies significantly fueled the market’s ascent this past year, with the Nasdaq achieving a notable gain of 28.6%. In contrast, the Dow, which does not heavily weigh tech stocks, recorded a more modest gain of 12.9%.

In total, the S&P 500 fell by 25.31 points on Tuesday. The Dow was down by 29.51 points, and the Nasdaq lost 175.99 points.

This stellar performance in the U.S. markets is attributed to a robust economy, strong consumer spending, and a resilient job market. Notably, significant stock price increases in the tech sector, particularly companies involved in artificial intelligence, such as Nvidia, contributed to the upward trajectory of the market.

Following three interest rate cuts in 2024, the Federal Reserve has adopted a more cautious approach going into 2025, considering persistent inflation as the nation braces for President-elect Donald Trump’s upcoming policies. Trump's recent threats to increase tariffs on imported goods have raised concerns about possible inflationary pressures as businesses may transfer the burden of tariffs onto consumers.

In energy markets, benchmark U.S. crude prices rose by 36 cents, reaching $72.08 per barrel, while Brent crude, the international benchmark, increased by 34 cents to $74.98 per barrel.

In foreign exchange trading, the U.S. dollar slightly fell to 157.28 Japanese yen from 157.24 yen, while the euro increased to $1.0373, up from $1.0361.

Asia, Stocks, Market, Economy