Japan's Nikkei smashes 40,000 barrier as Asia markets track Wall Street gains

Japan’s Nikkei 225 crossed the 40,000 mark on Monday, setting a new record high. The broader Topix was flat after reaching 2,700 last Friday. China’s “Two Sessions” meetings are ongoing, where Premier Li Qiang is expected to deliver the government’s work report including GDP growth targets. Australia’s S&P/ASX 200 started the week up, while South Korea’s Kospi and Kosdaq also rose. Hong Kong’s Hang Seng index was set to open slightly down. Oil prices rose as Saudi Arabia, Russia, and other OPEC+ producers agreed to extend voluntary supply cuts. In the US, the Nasdaq and S&P 500 hit new highs. Tech stocks were stand-out performers in 2023, and South Korea’s factory output fell in January while its retail sales grew. The technology sector led weekly gains in the S&P 500, while healthcare underperformed. Citi believes there is still upside for the equity rally, and US crude prices topped $80 for the first time since November.