Global markets were subdued on Monday, with US markets closed for Washington’s Birthday, while several Asian exchanges, including China, South Korea, and Taiwan, were shut for Lunar New Year. European equities edged modestly higher, while Asia-Pacific markets were mixed, with Japan slipping on weaker GDP data and Australia posting modest gains on earnings strength. New Zealand underperformed, weighed down by rate-sensitive sectors such as property and aged care.
US markets closed for Washington’s Birthday
US markets were closed on Monday for Washington’s Birthday, with trading set to resume on Tuesday.
European equities edge higher as defence focus offsets sector weakness
European markets closed modestly higher on Monday as investors digested geopolitical developments from the Munich Security Conference and monitored corporate updates. The STOXX 600 rose +0.1%, with the UK’s FTSE 100 gaining +0.3%, France’s CAC 40 edging up +0.1%, and Germany’s DAX down -0.5% while trading volumes were lighter due to a US market holiday. Defence-related themes remained in focus amid renewed calls for higher European military spending, though mining stocks lagged ahead of earnings, with Glencore (-0.3%), Rio Tinto (-1.1%), and Anglo American (-0.2%) lower. NatWest gained +4.7% after launching a £750m share buyback, while eurozone industrial output data and UK housing figures had limited market impact.
Asia-Pacific subdued as holidays thin trade and Japan growth disappoints
Asia-Pacific equities delivered a muted performance on Monday as Lunar New Year holidays thinned trading and weaker-than-expected Japanese GDP weighed on sentiment. Markets in China, South Korea, and Taiwan were closed, while Hong Kong’s Hang Seng rose +0.5% in a shortened session. Japan’s Nikkei 225 slipped -0.2% after data showed fourth-quarter GDP grew just +0.1% annualised, well below expectations. Australia’s ASX 200 edged up +0.2%, supported by gains in technology stocks, with WiseTech Global up +12.9% ahead of its earnings release and JB Hi-Fi rising +7.5% after beating expectations. Miners and major banks capped broader gains. New Zealand’s NZX 50 fell -0.6% to a five-and-a-half-month low, pressured by weakness in energy and property stocks despite some positive earnings updates. a2 Milk rose +5.0% after reporting double-digit revenue growth and upgrading full-year guidance, while Ryman Healthcare (-5.4%) declined amid continued softness in the housing market, according to new REINZ data. Contact Energy entered a trading halt pending details of a capital raise.
Oil rises while metals fall
WTI Crude added +1.1% to US$63.61/bbl, Gold lost -1.0% to US$4,990.19oz, while Silver fell -1.1% to US$76.56/oz.
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