Asian Markets Retreat After Four-Day Rally – Focus Shifts to Alibaba Results and U.S.-China Trade Developments
May 16, 2025 – DailyForex.pk
Asian stock markets pulled back on Thursday following a strong four-session rally led by technology stocks. The cooldown comes as investor optimism over the recent U.S.-China trade agreement begins to wane, and all eyes turn to Alibaba’s highly anticipated earnings report.
📉 Asian Market Overview
Regional indices recorded mixed performance after a muted close on Wall Street, where non-tech sectors lost steam. S&P 500 Futures fell 0.1% in Asian trading as caution built ahead of Federal Reserve Chair Jerome Powell’s upcoming speech.
Despite optimism around the temporary U.S.-China tariff reductions, markets remain wary, with tariffs still elevated. Investors are now looking for further de-escalation and additional trade deals with other key Asian economies.
💻 Tech Rally Slows – Alibaba Earnings in Focus
Asian tech stocks, which led gains earlier this week, took a breather. The tech-heavy KOSPI Index in South Korea dipped 0.1%, while Hong Kong’s Hang Seng moved sideways.
Shares of Alibaba Group (HK:9988) rose 0.5% ahead of its March quarter earnings. Analysts expect a positive report driven by recovering consumer spending in China and robust demand for Alibaba’s cloud services.
Tencent Holdings (HK:0700) also rose 0.5% after reporting a 13% YoY revenue jump, fueled by AI-driven growth in its gaming and advertising divisions.
However, tech sentiment took a hit from CoreWeave, an Nvidia-backed cloud company, which fell 15% in after-hours trading in the U.S. following warnings that rising AI-related costs could squeeze profit margins.
🇨🇳 Mainland China and Japan Lead Declines
Mainland Chinese indices Shanghai Composite and CSI 300 dropped between 0.2% and 0.5% after a strong weekly rally of 2%. Investors booked profits while awaiting more stimulus signals from Beijing.
Japan’s Nikkei 225 fell sharply by 1.1%, with the TOPIX Index dropping 1%, making them the worst performers in Asia. Tech losses and caution ahead of Friday’s Q1 GDP release weighed heavily. Economists expect a contraction due to weak private spending and global uncertainty, though strong capital investment may offset the decline.
🇦🇺 Australia, 🇸🇬 Singapore, 🇮🇳 India – Mixed Moves
Australia’s ASX 200 gained 0.1% following stronger-than-expected April labor market data, reducing expectations of further rate cuts from the Reserve Bank of Australia.
Singapore’s Straits Times Index added 0.4% on broader regional optimism.
India’s Gift Nifty 50 Futures signaled a softer open, down 0.2%, after Indian markets rallied earlier this week amid hopes of sustained peace with Pakistan following a recent ceasefire.
📌 Takeaway for Traders:
- Tech correction and Alibaba earnings are key near-term catalysts.
- U.S.-China trade tensions continue to shape regional sentiment.
- Japan GDP data and Fed commentary will drive market direction into the weekend.
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