Market dynamics: Post-holiday fluctuations in Asia-Pacific stock markets

Investing.com – Asia-Pacific stocks opened mixed on Tuesday after being closed for the holidays.

The shares were up 0.4% and unchanged as of 11:20am AEDT (12:20am GMT), but were closed for the holidays.

U.S. markets were closed Monday for a holiday. It ended 2023 up 24%, just 0.6% below the January 2022 record. It rose 14%, surpassing the 37,000 mark for the first time and setting a record seven closes in the final days of 2023. Big tech stocks rose 43% to post their best year since 2020.

In the commodity market, the last trading day of 2023 fell 0.14% to US$77.04 per barrel, and fell 0.13% to US$2,062.98 per barrel.

In the Australian bond market, the 2-year Treasury bond yield fell to 3.70%, and the 10-year Treasury bond yield fell to 3.95%. In contrast, U.S. Treasury bonds rose, with the 2-year Treasury yield falling to 4.25% and the 10-year Treasury yield remaining unchanged at 3.88%.

Copper prices fell back to 68.10 cents. The U.S. dollar is tracked at 101.4 against 16 other currencies.

Asian markets were closed for holidays. On the last trading day of 2023, China’s stock market closed higher, led by technology hardware and software stocks. However, analysts are still concerned about China’s market prospects in 2024 due to the continued downturn in real estate and the slow pace of economic recovery.

Hong Kong stocks closed flat but fell 14% in 2023, marking the fourth consecutive year of losses. Chinese real estate stocks are the main drag, with the mainland real estate index falling 40% in 2023.

Japan’s Nikkei ended slightly lower but rose 28% in 2023, making it the best-performing stock in the Asia-Pacific region, as risk appetite rebounded amid expectations of a 2024 Federal Reserve interest rate cut.

Indian stocks closed slightly lower on December 29, 2023, dragged down by the banking sector. However, this figure is up 19% from the previous year. “2023 is going to be an incredible year for Indian equities,” said Naveen Kulkarni, chief investment officer at Axis Securities.

European stocks rose on the last trading day of 2023, rising 0.2% to 479.19 points, supported by falling bond yields and expectations of an interest rate cut in 2024.

North American markets were closed Monday for a holiday. The S&P 500 ended the year up 24%, just 0.6% above the record set in January 2022. The Dow Jones Industrial Average rose 14%, surpassing 37,000 points for the first time and setting a record close seven times in the final 2023. The frenzy around artificial intelligence and Big Tech stocks has pushed the Nasdaq Composite soaring 43%, its best year since 2020.