Asian shares gain as most regional markets stay closed for Lunar New Year holidays

Asian Markets Rise as Japan’s Exports Surge Amid Global AI Boom

Asian shares climbed Wednesday, with Japan’s benchmark Nikkei 225 gaining more than 1% to reach 57,249.43 by midday, while most regional markets remained closed for Lunar New Year holidays. The positive momentum came despite a relatively quiet trading session in the United States the previous day.

Japanese lawmakers prepared to reappoint Sanae Takaichi as prime minister following the Liberal Democratic Party’s decisive victory in the February 8 election. Technology companies led the advance in Tokyo, with computer chipmaker Tokyo Electron surging 3.5% as investors continued to bet on companies positioned to benefit from the artificial intelligence revolution.

Japan reported a nearly 17% jump in exports for January compared to the previous year. While seasonal factors contributed to this increase, analysts noted that the global AI boom significantly boosted shipments of computer chips and related components, highlighting Japan’s growing role in the global technology supply chain.

However, not all Japanese technology companies fared well. Shares in SoftBank Group fell 2.8%, extending losses from Tuesday’s session when the company dropped more than 5%. The decline followed an announcement that SoftBank’s subsidiary, SB Energy, will participate in a $33 billion natural gas facility near Portsmouth, Ohio – reportedly the world’s largest such project. This agreement forms part of Japan’s broader commitment of $550 billion in U.S. investments under a trade deal that imposed a 15% tariff on Japanese exports to the United States.

Elsewhere in the Asia-Pacific region, Australia’s S&P/ASX 200 closed 0.5% higher at 9,007.00, while India’s Sensex remained flat. Thailand’s SET index advanced 0.6%, demonstrating the mixed but generally positive sentiment across accessible markets.

In the United States, Tuesday’s trading session saw major indices fluctuate between small gains and losses before ultimately closing slightly higher. The S&P 500, Dow Jones Industrial Average, and Nasdaq composite each gained 0.1%.

Media companies drove some of the most notable market movements. Paramount gained 4.9% after Warner Bros. Discovery announced it would allow Paramount to submit its “best and final” bid in an attempt to outbid Netflix for a potential acquisition. Warner Bros. Discovery shares rose 2.7%, while Netflix edged up 0.2%.

General Mills was among the day’s biggest losers, dropping 7% after the food manufacturer warned of growing consumer unease. This aligns with recent surveys showing weakening confidence among U.S. households struggling with persistent inflation, a softening job market, and concerns about potential tariffs affecting consumer goods prices.

The technology sector continues to face volatility as the market reassesses the impact of artificial intelligence. Companies across various industries have seen sharp sell-offs as investors worry about potential AI-driven disruption to established business models. As one market analyst put it, “We have a market that simultaneously believes AI will destroy everything and, at times, deliver nothing.”

A Bank of America survey of global fund managers revealed a record percentage believe companies are “overinvesting” – potentially signaling an eventual pullback in spending on chips from Nvidia and other semiconductor manufacturers central to the AI buildout.

In commodity markets, U.S. benchmark crude oil added 32 cents to reach $62.65 per barrel, while Brent crude, the international standard, increased by 34 cents to $67.76 per barrel. Gold prices rose 0.8%, and silver surged 2.8%, reflecting ongoing investor interest in precious metals amid economic uncertainty.

Currency markets saw the U.S. dollar strengthen slightly against the Japanese yen, trading at 153.65 yen compared to 153.29 yen previously. The euro weakened marginally against the dollar, slipping to $1.1837 from $1.1854. Meanwhile, Bitcoin held steady around $68,300.