Last week’s Jakota markets:
- Japan’s Nikkei 225 gained 0.9%, buoyed by Trump’s delay on reciprocal tariffs, while corporate goods prices rose more than expected
- South Korea’s KOSPI jumped 2.7%, reaching its highest level in three months on tech sector optimism
- Taiwan’s TAIEX shed 1.4% as semiconductor stocks retreated amid U.S. trade policy concerns
- The JAKOTA Blue Chip 150 Index slipped 0.1%, with Japanese cable maker Fujikura leading gains after raising profit forecasts
Japan
Japanese stocks advanced last week, with the Nikkei 225 rising 0.9% as a weaker yen bolstered market sentiment. Investors grew more confident after U.S. President Donald Trump held off on imposing reciprocal tariffs on trading partners. Japanese officials said they would assess the scope and impact of any potential U.S. measures and respond accordingly.
The market expects the Bank of Japan (BoJ) to raise rates in the second half of the year, yet Japanese government bond (JGB) yields continue to climb as investors bet on a faster pace of monetary tightening. The 10 year JGB yield reached 1.35%, up from 1.28% the previous week, marking its highest level in nearly 15 years.
Japan’s corporate goods price index (CGPI), which measures input costs for businesses, rose 4.2% in January from a year earlier, exceeding economists’ forecasts of 4% and accelerating from December’s 3.9% increase. Rising agricultural prices, particularly rice, drove the increase, strengthening expectations for further BoJ rate increases.
South Korea
South Korean stocks rallied, with the KOSPI climbing 2.7% to a three month high, led by gains in technology and auto shares amid growing optimism over potential exemption from U.S. tariffs.
Taiwan
Taiwan’s stock market declined, with the TAIEX index falling 1.4% as concerns over potential U.S. semiconductor tariffs dampened investor sentiment. Large cap electronics stocks, including Taiwan Semiconductor (TSMC), faced sharp declines as traders reduced their positions amid tariff uncertainty.
JAKOTA Blue Chip 150 Index
The JAKOTA Blue Chip 150 Index edged down 0.1% as declines in large cap stocks offset broader market gains, with 92 of 150 constituents advancing.
Fujikura, a Japanese electrical and optical cable manufacturer, led the index’s gainers after reporting on February 10 that its consolidated ordinary profit jumped 85.8% year-on-year to ¥95.7 billion for the April-December period. The company raised its full year ordinary profit forecast by 18.4% to ¥122 billion from ¥103 billion previously (prev. year: ¥69.7 billion), suggesting profit growth will accelerate to 75% from 47.7%. This puts Fujikura on track for a third consecutive year of record earnings.
Kakao posted the index’s steepest decline, falling 12.9% after releasing mixed quarterly results on February 13. The South Korean internet conglomerate has grappled with slowing growth as its messaging platform faces structural limitations affecting user engagement and business expansion.
The company reported weaker display advertising revenue, citing a sluggish economic recovery. Content revenue dropped 13% from a year earlier, with weakness in story and media segments raising profitability concerns.
Kakao swung to a net loss in the fourth quarter of 2024, hurt by goodwill impairments in its content business. The company warned of a challenging start to 2025, projecting weaker first quarter revenue due to seasonal weakness and higher fixed costs.
