Asia-Pacific markets traded predominantly higher on Monday, driven by a mix of economic data and anticipation of upcoming central bank decisions across the region. Investors were particularly focused on the release of Japan’s fourth-quarter economic growth figures, which indicated stronger-than-expected performance.
Japan’s Nikkei 225 index fluctuated around the flatline before ultimately closing at 39,174.25, reflecting cautious trading sentiment. In contrast, the Topix index experienced a modest gain, increasing by 0.28% to finish at 2,766.9. Meanwhile, South Korea’s Kospi index rose by 0.75%, closing at 2,610.42, buoyed by investor optimism. The small-cap Kosdaq index showcased notable strength, surging 1.61% to end the trading day at 768.48.
Preliminary government data released on Monday revealed that Japan’s economic expansion in the fourth quarter surpassed analysts’ expectations for both quarter-on-quarter and annualized growth. The nation’s Gross Domestic Product (GDP) grew at an annualized rate of 2.8%, significantly exceeding Reuters’ estimates, which had anticipated a more modest increase of only 1%. This robust growth has sparked discussions about the potential implications for monetary policy as central banks in the region prepare to make critical decisions this week.
