Asia report: SK Hynix drags Kospi down on return from holiday

(Sharecast News) - Asian markets mostly advanced on Friday, following gains in US equities as investors assessed Big Tech earnings. Trading volumes were limited, with China and Hong Kong markets still closed for the Lunar New Year holiday.

South Korea's Kospi returned from its holiday weaker, however, dragged down by a steep drop in SK Hynix.

"With the Chinese New Year holiday shuttering markets in China, South Korea, and Taiwan, liquidity in Asia will be unusually thin, leaving Japan to carry the torch," said SPI Asset Management managing partner Stephen Innes.

"Here, FX traders are gradually rediscovering their yen prowess, bolstered by a more hawkish tilt from the Bank of Japan.

"However, the looming threat of Trump's tariff bomb could derail the BoJ's tightening trajectory and potentially propel US treasury yields, setting the stage for a reversal of fortunes for the yen bulls."

Innes noted that the actual impact, however, hinged on the finer points of these tariffs, "crucially, who might be targeted next in this escalating trade standoff."

Japan and Australia in the green, Seoul returns from holiday

In Japan, the Nikkei 225 edged up 0.15% to 39,572.49, while the broader Topix gained 0.24% to 2,788.66.

NEC surged 18.38%, leading Tokyo's benchmark index, followed by Tokyo Gas, which rose 7.04%, and JTEKT, up 6.39%.

South Korea's Kospi 100 fell 0.99% to 2,514.50 as SK Hynix tumbled 9.86%.

The chipmaker, a key Nvidia supplier, faced selling pressure after China's DeepSeek unveiled a potential challenge to US artificial intelligence dominance.

Other major losers in Seoul included Doosan Bobcat, down 8.48%, and Hyundai Electric Energy Systems, which dropped 7.87%.

Australia's S&P/ASX 200 climbed 0.45% to 8,532.30, supported by strength in mining stocks.

Vault Minerals gained 6.85%, Emerald Resources added 4.59%, and Premier Investments advanced 4.55%.

Across the Tasman Sea, New Zealand's S&P/NZX 50 rose 0.52% to 12,995.01, with Vista Group International up 4.52%, while Infratil and Vector gained 2.37% and 2.34%, respectively.

In currency markets, the dollar was last up 0.25% on the yen to trade at JPY 154.67, while it slipped 0.19% against the Aussie to AUD 1.6075, and declined 0.26% against the Kiwi, changing hands at NZD 1.7699.

Oil prices were slightly lower, with Brent crude futures last down 0.26% on ICE at $76.67 per barrel, and the NYMEX quote for West Texas Intermediate easing 0.12% to $72.64.

Tokyo inflation rises faster in January, Australian producer inflation slows

In economic news, Tokyo's consumer price index rose 3.4% year-on-year in January, up from 3% in the prior month, according to data released by Japan's Statistics Bureau on Friday.

Core inflation, which excludes fresh food, increased 2.5% annually, slightly higher than December's 2.4% and in line with market expectations.

The Tokyo CPI is closely watched as an early gauge of national price trends.

Japan's unemployment rate meanwhile edged lower to 2.4% in December, down from 2.5% in the previous month, but missed expectations for an unchanged reading.

Meanwhile, retail sales for the country in December surged 3.7% year-on-year, marking the fastest pace in six months.

The figure exceeded forecasts of a 3.2% rise and outpaced November's 2.8% increase, signaling continued consumer resilience.

In Australia, producer prices rose 3.7% in the year to the December quarter, the slowest pace since late 2021, according to data from the Australian Bureau of Statistics.

On a quarterly basis, prices increased 0.8%, reflecting easing inflationary pressures.

Reporting by Josh White for Sharecast.com.