Asian Markets Cautiously Rise Amid US Trade Policy Concerns

Asian markets are trading mostly higher as traders remain cautious about US President Donald Trump's trade policies. Despite mixed performances across sectors, mining stocks shine amidst rising metal prices. Market volatility indicates possible impacts on investor sentiment moving forward.

Date: 21-02-2025

AI Rating: 6

**Asian Market Sentiment**: The report indicates that Asian stock markets are trading mostly higher despite negative cues from Wall Street. This reflects a cautious optimism among traders, as they await clarity on US trade policies and the outcomes of Ukraine peace talks.

**Stock Performance**: The Australian stock market is modestly lower, continuing a downward trend from the previous four sessions, with the S&P/ASX 200 losing 0.17 percent. Sectors show mixed performances, with mining stocks performing well, credited to higher underlying metal prices. Major miners reported gains, including BHP Group (+2%), Rio Tinto (+3%), Fortescue Metals (+3%), and Mineral Resources (+5%). This could positively affect their stock prices due to increasing commodity prices.

**Sector Losses**: Across other sectors, banks saw some declines, with Commonwealth Bank down over 2 percent and National Australia Bank edging down 0.2 percent. This suggests potential profit margin pressures that could further influence bank stock performances.

**Corporate News**: Notably, shares in Domain Holdings skyrocketed by more than 39% due to a $2.7 billion acquisition bid from CoStar, indicating strong market interest and potential for revenue growth. Conversely, shares of Guzman y Gomez fell by over 7% after disappointing earnings, though the company anticipates exceeding profit forecasts in 2025. This presents a mixed outlook for investors.

**Economic Indicators**: In Japan, the core consumer price index showed an annual growth of 3.2% in January 2025, better than expected, which may suggest strengthening consumer demand. This could indicate improved profitability for companies operating in the region. Japan's annual inflation rate climbed to 4%, the highest since January 2023, which can influence central bank policies and future interest rate decisions.

Stocks: BHP RIO FMG MAY CBA NAB DOMA