Asian markets remained subdued on Monday, with a holiday in China keeping trading volumes low. Japanese stocks took a hit, falling 0.8%, as fourth-quarter GDP growth fell short of expectations. The data showed a 0.2% year-on-year growth rate, significantly lower than the forecasted 1.6%. This weak performance was attributed to weak business spending, sluggish export demand, and tepid private consumption. Despite this, Japanese shares managed to limit broader losses due to expectations of increased fiscal stimulus from Prime Minister Sanae Takaichi. However, the outlook for interest rate hikes by the Bank of Japan remains uncertain, as signs of a weakening economy persist. Hong Kong's market, on the other hand, saw a 0.3% gain, driven by the addition of metal miners CMOC Group Ltd and Laopu Gold Co Ltd to the Hang Seng index. Battery giant Contemporary Amperex Technology Co Ltd also rose 2.5% after being added to the index. In other Asian markets, Australia's index rose 0.2%, while Singapore's index fell 0.1% due to weaker-than-expected January data. India's market futures fell 0.4%, with concerns over AI disruptions in the software industry causing tech stocks to slide 1.3% on Friday.
