Market Commentary - Foreign Markets

16-Feb-2026      16:23

Japanese markets fall slightly after weak GDP data

Asian stocks ended mixed in thin trade on Monday, with China, South Korea and Taiwan closed for Lunar New Year holidays.

A cautious undertone prevailed as AI fears continued to rattle markets ad data showed Japan's economy grew at a much slower rate than expected in the fourth quarter of 2025.

Oil prices were little changed as investors weighed prospects of OPEC+ supply increases and awaited upcoming U.S.-Iran talks aimed at de-escalating tensions.

Japanese markets fell slightly and the yen eased after posting its strongest weekly gain in about 15 months, as GDP figures fell short of market expectations in late 2025, adding to pressure on Prime Minister Sanae Takaichi to press ahead with plans to revive the economy by raising government spending and cutting taxes.

Data showed GDP the world's fourth-biggest economy grew a miserly 0.1 per cent annualized in the December quarter, far smaller than market expectations for a 1.6 percent gain as government spending dragged on activity.

The Nikkei average dipped 0.24 percent to 56,806.41, dragged down by paper & pulp, transportation and communication stocks. The broader Topix index settled 0.82 percent lower at 3,787.38.

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