Mainland buying dominates Hong Kong stock market turnover
- Asian stock markets experienced a significant decline as major markets in Tokyo and Seoul closed for the New Year celebrations.
- Investor sentiments were downbeat due to ongoing political uncertainties, especially regarding President Trump's incoming policies.
- Overall, the mixed results indicate a cautious market outlook as traders await the reopening of Tokyo trading.
On January 2, 2025, Asian markets experienced mixed trading results as major exchanges in Tokyo and Seoul were closed to observe New Year's holidays. Tokyo will resume trading on January 6, which means that the Japanese market will remain inactive for the rest of the week. This closure contributed to the market's overall cautious sentiment as investors grappled with ongoing political uncertainties, particularly regarding the implications of President Donald Trump's incoming administration, which has further sparked concerns among investors. South Korea’s Kospi saw a minor decline almost reaching a 0.1% decrease, reflecting a continued sense of apprehension among investors regarding the market outlook. Meanwhile, Australian equities registered a slight increase with its S&P/ASX 200 gaining 0.4% during early trading, reaching 8,193.90 points. However, loss was observed in Hong Kong's Hang Seng index which dropped 1.3% to close at 19,807.19 points, while the Shanghai Composite fell by 0.8% to 3,325.56. The downward trend in Hong Kong was exacerbated by lower trading volumes affected by a national holiday in the Philippines commemorating Rizal Day, which contributed to the overall decline across Asian equities on this day. Concerns about potential inflation ignited by Trump's administration also continued to weigh on investors’ minds, as speculations grew that proposed tariffs on imports could make prices spike. As a result, markets reflected a waiting period with mixed results across Asia amid these uncertainties. The upcoming trading session in Tokyo is highly anticipated, with investors eager for any indications of how the market will respond to these ongoing economic and political challenges in the region. For U.S. markets, the day closed a day earlier for New Year’s Day, but the air of uncertainty remained with previous notes of cautious trading as well. Companies within the S&P 500 are expected to announce earnings growth, which may shift investor sentiment in the upcoming sessions, but for now, Asian shares faced downward pressure largely influenced by the Tokyo market's inactivity this week.