Asian markets started the week strong, buoyed by a weaker dollar, China's ongoing recovery, and a shift from U.S.-centric trades. Japan's Q4 GDP data, expected to show 1.0% annualized growth, is a key focus, with business investment offsetting weak consumption.
The dollar hit a two-month low due to delays in U.S. tariff implementations, marking its longest losing streak since August. Emerging market currencies are rising against the greenback, except for the Indian rupee. The MSCI Asia ex-Japan index surged 8% over the past month, while Hong Kong's Hang Seng jumped 20%, and its tech index soared 30%.
China's tech giants Baidu, Alibaba, Tencent, and Xiaomi (BATX) have gained 22% since Trump's inauguration, outperforming America's 'Magnificent Seven,' which remained flat. Analysts highlight that BATX's $1 trillion market cap pales in comparison to the Mag Seven's $17 trillion, indicating potential growth if China continues excelling in AI.
Taiwan Semiconductor Manufacturing Co and Broadcom are reportedly exploring deals that could split Intel, further shaking up the global chip industry. Geopolitical tensions in the Russia-Ukraine war remain in focus as French President Macron hosts an emergency European summit, with peace talks seemingly limited to the U.S. and Russia. Prospects of peace are driving oil and the dollar lower while boosting European and Asian stocks.
Key upcoming data include Japan and Thailand's Q4 GDP figures, which could further influence market trends. Investors are keenly watching these developments as Asian markets continue their upward trajectory.


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