Today’s Stock Market Update: Mixed Performances in Asia as Chinese Shares Soar While Others Decline

Asian stock markets experienced mixed results on Friday. Investors were reacting to a drop in Walmart’s shares, which pressured Wall Street off its record highs.

In Japan, the Nikkei 225 index climbed 0.3%, reaching 38,781.99. The weak yen is favorable for export-driven companies, as the U.S. dollar increased to 150.46 yen from 149.53. Meanwhile, the euro decreased slightly, now costing $1.0495.

Japan’s core consumer price index, excluding fresh food prices, rose by 3.2% from January of the previous year. This inflation rate plays a crucial role in the Bank of Japan’s decisions on interest rates, which currently remain above the 2% target. Last month, the Bank adjusted its key policy rate to 0.5%.

In Australia, the S&P/ASX 200 fell by 0.3% to 8,296.20. South Korea’s Kospi was stable, dropping less than 0.1% to 2,653.63. On a positive note, Hong Kong’s Hang Seng surged 3.3% to 23,330.78, largely thanks to strong earnings from Alibaba.

Alibaba, a major player in Chinese e-commerce, reported its most significant revenue growth in over a year, surpassing analyst expectations. The company announced a net profit of 48.9 billion yuan (around $6.71 billion). Following this news, Alibaba’s stock jumped 8.1%, with CEO Eddie Wu highlighting plans for vigorous investment in artificial intelligence and cloud services.

In China, the Shanghai Composite index gained 0.8%, reaching 3,378.03.

In the U.S., the S&P 500 index dipped 0.4% after setting all-time highs earlier in the week. The Dow Jones fell 450 points (1%), and the Nasdaq composite decreased by 0.5%. Walmart’s stock led the decline, dropping 6.5% despite reporting solid profits. The retailer’s future profit outlook fell short of expectations, reflecting ongoing inflation concerns and potential tariffs.

Despite the challenges, Walmart still anticipates revenue growth for the coming year. Other retailers, including Costco and Target, also saw their shares drop following Walmart’s forecast.

Conversely, Shake Shack’s stock rose 11.1% after reporting better-than-expected profits, with CEO Rob Lynch noting consistent sales despite adverse weather conditions.

Overall, the S&P 500 lost 26.63 points, settling at 6,117.52. The Dow closed at 44,176.65, down 450.94 points, while the Nasdaq finished at 19,962.36, down 93.89 points.

In the bond market, Treasury yields decreased after a report indicated more U.S. workers applied for unemployment benefits than anticipated. Although this suggests an increase in layoffs, numbers remain relatively low historically. This data may keep the Federal Reserve from making immediate changes to interest rates.

Last month, the Fed chose not to lower its main interest rate, marking the first pause in their adjustments since starting them in September. Fed officials discussed the possible impact of tariffs and high consumer spending on inflation at their recent meeting.

The yield on the 10-year Treasury fell to 4.50%, while the two-year Treasury yield remained steady at 4.27%.

In energy markets, U.S. crude oil dipped 16 cents to $72.32 a barrel, and Brent crude fell by 17 cents to $76.31 a barrel.