Europe Asia News

South Korean and Taiwanese markets were also closed on Monday. Regional markets followed weak signals from Wall Street, as January consumer inflation data failed to ease uncertainty over interest rates. U.S. markets were also closed on Monday due to a holiday.

Japan’s Nikkei 225 Index fell 0.2%, while the TOPIX Index dropped 0.8% after gross domestic product data showed fourth-quarter growth came in well below expectations.

Japan’s GDP grew 0.2% year-on-year in the fourth quarter, far below forecasts of 1.6%. The data also showed only a slight improvement in growth following a sharp contraction in the third quarter.

The weak data was mainly driven by soft business spending, sluggish export demand, and moderate private consumption. Stimulus measures taken by Tokyo in late 2025 had little impact in supporting growth. However, expectations that Japanese Prime Minister Sanae Takaichi would increase fiscal stimulus helped limit broader losses in Japanese equities.

Signs of weakness in Japan’s economy also reduced the likelihood of further interest rate hikes by the Bank of Japan, although Monday’s data showed inflation remained steady in the fourth quarter. Hong Kong’s Hang Seng Index rose 0.3% in thin holiday trading.

Chinese markets will remain closed all week due to the Lunar New Year holiday, while Hong Kong will be closed from Tuesday through Thursday.

Elsewhere in Asia-Pacific, Australia’s ASX 200 Index gained 0.2%, while Singapore’s Straits Times Index fell 0.1% after the country’s key non-oil exports in January came in below expectations.

India’s Nifty 50 futures dropped 0.4%, with the index heading toward further losses as growing concerns over AI-related disruptions in the software sector weighed on local tech giants. Losses in the technology sector led the Nifty to fall 1.3% on Friday.