Asia-Pacific equities opened modestly higher on Monday, with trading subdued amid public holidays in South Korea and China, as investors assessed softer-than-expected growth data from Japan.
By 11:30 am AEDT (12:30 am GMT), Australia’s S&P/ASX 200 was up 0.2%, while Japan’s Nikkei 225 also gained 0.2%, hovering near record highs.
South Korea’s KOSPI 200 remained closed for a public holiday, contributing to lighter regional volumes.
Fresh data showed Japan’s gross domestic product (GDP) expanded 0.1% quarter-on-quarter in the final three months of 2025, reversing a 0.7% contraction in the third quarter and narrowly avoiding a technical recession.
A technical recession is commonly defined as two consecutive quarters of negative GDP growth.
However, the result fell short of economists’ expectations for a 0.4% expansion.
On an annualised basis, gross domestic product rose 0.2%, significantly below forecasts of 1.6%, though it marked a rebound from the prior quarter’s 2.3% annualised decline.
Year-on-year, fourth-quarter GDP grew 0.1%, slowing from 0.6% in the previous quarter.
According to Japan’s Cabinet Office, private consumption was the primary driver of growth during the quarter, helping offset broader economic softness.
In the United States, major benchmarks finished Friday’s session in a tight range. The Dow Jones Industrial Average rose 0.1%, while the S&P 500 also added 0.1%. The Nasdaq Composite slipped 0.2%.
In commodities, Brent Crude edged 0.3% higher to US$67.75 per barrel. Spot gold surged 2.5% to settle at US$5,042.74 per ounce, reflecting continued safe-haven demand.
Chinese equities had closed lower on Friday before the Lunar New Year holiday period. The Shanghai Composite fell 1.3% to 4,082.1, while the CSI 300 dropped 1.3% to 4,660.4.
In Hong Kong, the Hang Seng Index declined 1.7% to 26,567.1, while India’s BSE Sensex slipped 1.3% to 82,626.8.
European markets ended Friday on a mixed note. The UK’s FTSE 100 rose 0.4% to 10,446.4, Germany’s DAX gained 0.3% to 24,914.9, and France’s CAC 40 fell 0.4% to 8,311.7.
