Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
What’s happening: Japanese stocks ended Thursday’s trading session higher but sharply reversed gains this morning.
What happened: Chip stocks, which are important components of the Nikkei 225, remained volatile after bellwether Nvidia reported its fourth-quarter results.
Markets were supported by some weakness in the yen, while US tariff threats weighed on sentiment.
Why it matters: Weakness in the yen supports Japanese exporters. A softer yen makes Japanese products more competitively priced in the international markets, boosting their demand. It also increases the earnings for Japanese exporters, as they receive a larger amount of their domestic currency without any change in prices in foreign currencies.
Market sentiment was also supported by billionaire investor Warren Buffett saying that his company Berkshire Hathaway has plans of increasing its stakes in Japanese stocks.
Marine transport, trading and pharma stocks were the best gainers during Thursday’s session. Shares of Sompo Holdings rose 5.00%, Fujikura rose 4.81% and Itochu gained 4.34%.
However, investors responded to Nvidia’s results by abandoning chip stocks. Nasdaq-listed Nvidia, which is at the epicentre of the AI boom, delivered strong results but disappointed investors who were expecting another blockbuster quarter. Nvidia’s stock slid 8.5% on Thursday, the steepest single day decline in a month.
Japan’s chip stocks mirrored the decline this morning. Shares of Tokyo Electron fell 5.6% and Advantest shed 9.8%. Socionext, which had climbed almost 13% on Thursday, tumbled 7.0% this morning.
Economic and geopolitical tensions in the US and China impacted investor sentiment. On Thursday, the US reported a deceleration in GDP growth in the fourth quarter and a surge in initial jobless claims in the week ending February 22.
The Nikkei 225 rose by 0.30% to settle at 38,256.17 on Thursday. The index was trading lower by 3.3% at 36,988.53 this morning.
What to watch: Investors will continue monitoring announcements by the Trump administration. Markets will also look out for any comments from Bank of Japan officials regarding a possible interest rate hike at the next policy meeting, scheduled for mid-March.
Context: Crude prices gained on Thursday, snapping a three-day losing streak.
Details: Crude prices have been under pressure since the beginning of this year due to a steep decline in demand from China, the world’s top oil importer. China has imported only 10.42 million barrels per day (bpd) of oil in the first two months of the year, down 840,000 bpd from the 11.26 million bpd imported in the first two months of 2024, according to LSEG Oil Research.
The Energy Information Administration (EIA) reported a decline in US crude stockpiles of 2.33 million barrels in the week ending February 21. This came against expectations of a build of 2.54 million barrels. A drawdown reflects higher demand, which boosts crude prices.
Although hopes of a potential peace deal between Russia and Ukraine kept crude oil prices in check through this week, the US going against the UN’s draft deal reignited supply concerns.
News of the US Strategic Petroleum Reserve buying more oil also supported crude prices.
WTI for April delivery rose 2.22% to $70.14 per barrel on Thursday. Brent crude climbed to $73.77 per barrel, recovering from a two-month low of $72.53 in the previous session.
What to watch: Investors will continue monitoring Russia-Ukraine peace talks, with Volodymyr Zelenskiy scheduled to meet Trump in Washington on Friday next week.
Other Markets: US trading indices closed lower on Thursday, with the Dow Jones index, S&P 500 and Nasdaq 100 down by 0.45%, 1.59% and 2.78%, respectively.
US President Donald Trump met UK Prime Minister Keir Starmer at the White House on Thursday to discuss the Ukraine peace deal and the US-UK trade agreement. The news sent the RUB/USD pair higher in forex trading this morning.
The Philippines’ trade deficit widened to $5.1 billion in January, from $4.4 billion in the year-ago month. This being the largest trade gap in three months exerted pressure on the PHP/USD forex pair.
Australia’s housing credit fell to 0.40% in January, from 0.50% in the previous four months. The figure missing market expectations of 0.50% sent the AUD/USD pair lower in forex trading this morning.
Saudi Arabia’s value of loans grew by 13.80% year-on-year in January, accelerating from 13.4% in the previous month. Despite the figure coming in ahead of expectations of 12.9%, the SAR/USD forex pair remained under pressure.
The US reported a rise in initial jobless claims by 22,000 to 242,000 in the third week of February. This was the biggest rise in over two months and came in significantly above market expectations of 221,000. However, the US dollar rose sharply this morning.
Austria’s PPI (12:00 UAE Time), Czech Republic’s GDP growth (12:00 UAE Time), Germany’s unemployment rate (12:55 UAE Time), Iceland’s GDP growth (13:00 UAE Time), Nigeria’s forex reserves (13:00 UAE Time), Spain’s current account (13:00 UAE Time), Sri Lanka’s inflation rate (13:30 UAE Time), Belgium’s GDP growth (14:00 UAE Time), Cyprus’s GDP growth (14:00 UAE Time), Greece’s PPI and retail sales (14:00 UAE Time), Italy’s inflation rate (14:00 UAE Time), Ireland’s retail sales (15:00 UAE Time), Portugal’s GDP growth and inflation rate (15:00 UAE Time), Brazil’s gross debt to GDP and nominal budget balance (15:30 UAE Time), India’s bank loan growth, deposit growth, forex reserves and infrastructure output (15:30 UAE Time), India’s GDP growth (16:00 UAE Time), Brazil’s GDP growth (16:00 UAE Time), Germany’s inflation rate (17:00 UAE Time), Spain’s business confidence (17:00 UAE Time), Canada’s GDP growth (17:30 UAE Time), US core PCE price index, personal income, personal spending, goods trade balance, retail inventories and wholesale inventories (17:30 UAE Time), US Chicago PMI (18:45 UAE Time) and Canada’s budget balance.
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities LLC – S.P.C (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates under First Category: Dealing in Securities and Fifth category: Arrangement and advice (Introduction). ADSS is a Limited Liability Company – Sole Proprietorship Company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
