Asia Shares Rise as Some Markets Remain Closed for Holidays

The Asia-Pacific region saw a mixed performance in its stock markets today, with some exchanges rising while others remained closed for holidays. The Hang Seng Index in Hong Kong closed 0.14% higher at 20,225.11, despite trading for only half the day due to the Lunar New Year holiday. Meanwhile, Japan's Nikkei 225 ended the day 1.39% lower at 39,016.87, extending its losses for a second day, while the Topix index was flat at 2,756.90.

India's Nifty 50 benchmark and the BSE Sensex index were up 0.97% and 1.07%, respectively, in the last two hours of trade. The Reserve Bank of India announced a slew of plans to pump more than $17 billion into the financial ecosystem through measures including bond purchases and currency swaps. Australia's S&P/ASX 200 ended the day 0.12% lower at 8,399.1, with weakness in gold miners, energy, and technology stocks partially offset by gains in iron ore miners and financial players.

Taiwan, South Korean, and Chinese markets were closed for holidays, contributing to the mixed performance across the region. Overnight in the U.S., the S&P 500 and Nasdaq Composite plunged on concerns about an artificial intelligence stock bubble popping due to the emergence of Chinese startup DeepSeek. The Nasdaq Composite lost 3.07%, falling to 19,341.83, and the S&P 500 slid 1.46% to 6,012.28. The Dow Jones Industrial Average added 289.33 points, or 0.65%, to close at 44,713.58.



The holiday effects observed in the Chinese markets, as discussed in the provided information, suggest that returns on days adjacent to specific festivities are statistically higher than returns on common trading days. This phenomenon challenges the Efficient Market Hypothesis (EMH) and indicates that investors can capture excess returns by exploiting specific investment strategies. The presence of holiday effects in various Asian markets, including China, Singapore, and India, highlights the importance of understanding these dynamics when investing in the region.

The attributes of shares, such as size, sector, and location, can influence the presence and magnitude of holiday effects in the Asian markets. The study conducted on the Shanghai (SH), Shenzhen (SZ), Hang-Seng (HS), and Hang-Seng China Enterprises (HSCE) indices, which have different compositions and attributes, found that shares with different attributes listed on similar markets can generate different asset pricing dynamics, including holiday effects. This suggests that the size, sector, and location of shares can all play a role in determining the presence and magnitude of holiday effects.

In conclusion, the Asia-Pacific region saw a mixed performance in its stock markets today, with some exchanges rising while others remained closed for holidays. The holiday effects observed in the Chinese markets, as well as in other Asian markets, highlight the importance of understanding these dynamics when investing in the region. The attributes of shares, such as size, sector, and location, can influence the presence and magnitude of holiday effects, making it crucial for investors to consider these factors when making investment decisions in the Asia-Pacific region.