Lunar New Year trading in Asia was subdued as extended holiday closures in Shanghai, Seoul and Taipei coincided with lacklustre economic data from Japan and reduced activity across regional markets.
Japan reported that the world's fourth-biggest economy expanded just 0.1 percent in the last three months of 2025, a figure below market forecasts of 0.4 percent, and the result rattled the post-election high of Prime Minister Sanae Takaichi.
Marcel Thieliant at Capital Economics said the weak growth "implies that the large supplementary budget passed at the end of November provided no boost to public spending last quarter just yet", and he added it raises the chances of tax or spending measures during the first half of the fiscal year.
Markets were thin because trading floors closed early or for full days ahead of the holiday, with Hong Kong and Singapore ending early, and Shanghai, Seoul and Taipei closed for the extended break, while US markets were shut for Presidents' Day.
Tokyo closed down 0.2 percent at 56,806.41, Hong Kong's Hang Seng closed up 0.5 percent at 26,705.94, London opened higher, and New York's Dow closed up 0.1 percent at 49,500.93, according to reported figures.
Investors showed tentative calm after last week's tech-led plunge as attention shifted to artificial intelligence, and the AI Impact Summit in New Delhi was noted this week with attendance by OpenAI CEO Sam Altman and Google's Sundar Pichai.
US government data showed consumer inflation cooled slightly in January, and Kyle Rodda at Capital.com said "US inflation data was good. And the initial response in equities reflected that. But the devil was in the details." Annual core inflation fell to 2.4 percent as reported, supporting expectations for deeper Fed rate cuts and lowering real yields.
Precious metals reacted, with gold creeping above $5,000 an ounce after Friday's softer US inflation, and Standard Chartered said "Markets have priced in a higher probability of deeper Fed rate cuts this year, driving real yields lower and supporting gold demand."
Community Preparations And Cultural Practice
In San Francisco, preparations for Lunar New Year take a hands-on form, as artisan and teacher Corey Chan, 63, readies lion heads and dragon gear in his Anza Vista garage, where items hang from walls and ceilings.
Chan trained in construction, repair and performance for lion dances and serves as heritage director at Cameron House, a longstanding nonprofit in San Francisco's Chinatown, while also directing Kei Lun Martial Arts, which he joined at 18.
He works with a small crew that includes Jeff Lee, Travis Lum and Thomas Chun, and they maintain equipment used for events that include weddings, business openings and funerals for esteemed elders and martial arts teachers.
Chan described the tradition as a "never-ending learning journey" and said he was "hungry to learn", reflecting a role that combines craftsmanship, instruction and community service as celebrations approach.
