All three major U.S. indices closed higher on Friday, fuelled by a surge in big tech stocks. The S&P 500 rose 1.2%, and the Nasdaq 100 advanced 1.7%, both ending a five-session losing streak, while the Dow Jones jumped 339 points. Technology stocks were standout performers, with Nvidia soaring 4.4% and Super Micro Computer rising 10.9%. Tesla also gained 8.2% after reporting record-high sales in China for 2024. However, U.S. Steel shares fell 6.5% after President Joe Biden blocked Nippon Steel's $14.9 billion acquisition, which faced political opposition. On the economic front, U.S. manufacturing showed modest growth in December, with new orders hitting their highest level since early last year, signaling economic resilience. Despite Friday’s gains, the broader market still posted weekly losses, with the S&P 500 and Nasdaq down 0.5%, and the Dow closing with a 0.6% decline.
The BSE Sensex closed about 0.9% down at 79,223 on Friday, ending a two-session winning streak. Investors took profits following the index's strongest performance in nearly six weeks, amid ongoing uncertainty at the start of the year. Market participants also remained concerned about the potential for higher tariffs under the Trump administration and their impact on global trade and India's economy. Banks, financials, IT and pharma companies suffered strong losses, while auto stocks outperformed. Still, the index posted a weekly gain of 0.7%, marking the second straight weekly rise, buoyed by optimism about earnings results for Q3, set to begin next week.
The Shanghai Composite fell 1.57% to close at 3,211, while the Shenzhen Component tumbled 1.89% to 9,897 on Friday, marking their third consecutive session of declines. Investors cited growing economic concerns, overshadowing Beijing’s latest efforts to stabilize market sentiment. A lack of concrete policy announcements this month, coupled with the looming trade war with the US ahead of Donald Trump’s inauguration on January 20, contributed to the negative outlook. In response, Chinese authorities pledged to lower interest rates and expand the issuance of ultra-long bonds this year in a bid to restore investor confidence. Notable losses were seen in stocks such as East Money (-4.7%), ZTE Corp (-6%), and Yonghui Securities (-10%). For the week, the Shanghai and Shenzhen indexes posted declines of 5.6% and 7.2%, respectively.
The Nikkei 225 dipped 383 points or near 1% to end at 39,894 on the last trading day of 2024, snapping two-day gains amid some profit-taking after the index hit a five-month peak last week. Investors seemed unsettled as they could not find clear reasons for the Nikkei to cross the 40,000 level. The biggest percentage loser on the index was Nissan Motor, slipping by 6.4%. Meanwhile, chip-testing equipment maker Advantest was down by 2.5%. Makino Milling Machine's shares were untraded after a surprise unsolicited takeover bid by Japanese manufacturing giant Nidec. Nevertheless, markets jumped 4.4% for the month, bringing an almost 20% jump for the full 2024, the best year on record, buoyed by strong corporate earnings and a weaker yen boosting export-oriented sectors. Meanwhile, the broader index fell 0.6% but logged gains of 3.8% for the month and 17.6% for the year. The Japanese markets will resume activity on January 6 after closing for the New Year holidays from the next session.
