Asian stock markets delivered a mixed performance on Tuesday as trading volumes were reduced by regional holidays. Japan’s main indexes extended declines after the latest gross domestic product print disappointed, while Australia’s benchmark advanced, buoyed by significant gains in BHP Group following strong first-half results.
Several major markets including China, Hong Kong, South Korea and Singapore were closed for the Lunar New Year, and a public holiday on Wall Street on Monday left regional traders with fewer overseas cues. S&P 500 futures traded about 0.4% lower during Asian hours, with market attention turning to a series of U.S. economic indicators scheduled for release during the week.
Japan: growth miss weighs, technology under pressure
The Nikkei 225 and TOPIX each fell 0.9% on Tuesday, continuing losses from the previous session after the economy’s fourth-quarter growth came in well below expectations. The weak GDP reading reinforced concerns that late-2025 stimulus measures from Tokyo produced only limited results, and it strengthened the view that Prime Minister Sanae Takaichi may need to introduce further measures to support growth.
Technology names were notably weaker amid renewed selling, in part linked to ongoing worries about the potential impact of artificial intelligence on the sector. SoftBank Group Corp. (TYO:9984) was among the largest decliners on the Nikkei, slipping nearly 5%. Industrial firms also gave back ground, with Kawasaki Heavy Industries, Ltd. (TYO:7012) and Hitachi Ltd (TYO:6501) posting losses.
Australia: BHP drives gains as commodities rally helps results
In Australia, the ASX 200 advanced 0.3%, led by a near 7% jump in BHP Group Ltd (ASX:BHP), which surged to a record high after reporting strong earnings for the first half of its fiscal year. BHP was the principal contributor to the index’s rise, offsetting downturns in other sectors.
The miner’s results benefited from elevated copper prices that rallied late in 2025, and record-high iron ore production that supported top-line performance, according to the company’s results. Those factors underpinned investor enthusiasm and propelled the stock to its session peak.
Regional snapshot and other market movers
Most other Asian bourses were closed for the holiday period. Futures for India’s Nifty 50 edged down about 0.2%, signaling continued pressure on Indian equities driven by sell-offs in large-cap software companies. Major Indian IT names including Infosys Ltd (NSE:INFY) and Tata Consultancy Services Ltd. (NSE:TCS) were cited as being hit by investor concerns that AI agents could erode a substantial portion of their market opportunities.
With trading light across much of the region and U.S. markets closed earlier in the week, market participants appeared cautious, watching upcoming U.S. data for guidance on the broader economic backdrop.
Bottom line
Holiday-reduced liquidity amplified the impact of local developments: weak Japanese GDP extended selling in Tokyo, while a commodity-fueled earnings beat at BHP lifted Australian equities. Broader investor focus remains on imminent U.S. economic releases and on how policymakers may respond to tepid growth readings in Japan.