Global Shares Rise as Asian Markets Pause for Lunar New Year
European shares advanced Tuesday following a quiet day in Asia, where most markets were closed for Lunar New Year holidays. The mixed global performance reflects regional variations in economic data, political developments, and investor sentiment.
Europe Moves Higher
France’s CAC 40 inched up 0.1 percent to 8,318.51, while Germany’s DAX gained 0.2 percent to 24,845.47. Britain’s FTSE 100 picked up 0.4 percent to 10,481.00. The modest gains suggest cautious optimism among European investors as they assess economic conditions and corporate earnings.
The positive movement stands in contrast to futures trading in the United States, where the S&P 500 future was down 0.3 percent and the Dow Jones Industrial Average future edged 0.1 percent lower. Trading on U.S. exchanges was closed Monday for Presidents Day, leaving investors to anticipate Tuesday’s opening.
Japan’s Mixed Picture
In Tokyo, weak economic data and profit-taking weighed on shares. The Nikkei 225 slipped 0.4 percent to finish at 56,566.49, retreating from recent record levels.
A 5.1 percent decline for tech giant SoftBank Group pulled the index lower. The drop followed a significant rally after Prime Minister Sanae Takaichi’s ruling party secured a resounding win in the February 8 general election. But traders appear to be locking in profits as polls show Takaichi’s popularity slowly slipping and hopes for economic revival from her planned spending increases and tax cuts begin to fade.
Regional Variations
Elsewhere in Asia, markets that remained open showed modest gains. Australia’s S&P/ASX 200 rose 0.2 percent to 8,958.90. India’s Sensex edged 0.2 percent higher. Thailand’s SET added 1.4 percent, the strongest performance among regional markets.
The Lunar New Year holidays, celebrated across much of East and Southeast Asia, kept trading volumes light in the region. Markets in China, Hong Kong, South Korea, Singapore, and several other countries were closed for the celebrations, which mark the beginning of the Year of the Horse.
What Investors Are Watching
Global markets continue to navigate competing forces. In Japan, the question is whether Takaichi’s policy agenda can deliver sustained growth or whether the post-election rally has run its course. In Europe, investors are watching inflation data and central bank signals. In the United States, the focus remains on corporate earnings and the trajectory of interest rates.
For now, the Lunar New Year pause offers a moment of relative calm in Asian markets. When trading resumes across the region, investors will return to familiar questions: How strong is global growth? When will central banks ease policy? And which markets have run too far, too fast?
The answers will shape the year ahead. For this week, at least, the horse has just begun to run.
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