The Shangai Composite Index Closes 0.94% Lower

The Nikkei 225 Index fell 0.1% to close at 53,323 on Friday, snapping a three-day advance as losses in technology stocks weighed on the market amid renewed concerns over the sustainability of massive investments in artificial intelligence.

The benchmark also tracked US futures lower amid speculation that President Donald Trump will nominate former Fed Governor Kevin Warsh, a more hawkish candidate, as the next Federal Reserve chair.

On the domestic front, caution prevailed ahead of the lower house snap election scheduled for Feb. 8.

Tech-sector losses were led by Advantest (-5%), Lasertec (-2.9%), and Keyence (-4%).

In contrast, data storage firm Kioxia Holdings surged 11% to a fresh record high ahead of its Feb. 12 earnings release.

The Nikkei 225 posted losses for a second consecutive week but still ended the month nearly 6% higher.

As chatter around the SpaceX and xAI merger grows, Elon Musk hinted at the possibility of a Starlink Phone and said that it was “not out of the question” in response to a post by a user on X.

Starlink, built and deployed by SpaceX, is a “Direct to Cell” network and the largest 4G coverage provider on Earth, with more than 12 million people already relying on Starlink to connect their LTE phones in areas where terrestrial service is unavailable.

“It would be a very different device than current phones. Optimized purely for running max performance/watt neural nets,” Musk said on X, formerly known as Twitter.

What Happened To The Tesla Phone?

In 2024, during a podcast with Joe Rogan, Musk said Tesla could build a smartphone but only when needed. "If Apple and Google/Android started doing really bad things, like, I don't know, censorship of apps or... just being like gatekeepers, in a really bad way, then I guess we'd make a phone," Musk told Rogan a couple of years ago.

But the billionaire then said Tesla would not do it unless “they have to or something.”

SpaceX, xAI Merger

Reuters reported on Thursday that Elon Musk’s SpaceX is in talks with his artificial intelligence company, xAI, ahead of a potential initial public offering of the rocket manufacturer later this year. According to the report, two entities have been established in Nevada to facilitate a potential merger, although details on the valuation and timing remain confidential. Separately, Bloomberg News reported that SpaceX is considering a potential merger with electric-vehicle giant Tesla, in addition to xAI.

How Are Stocktwits Users’ Reacting?

Retail sentiment on SpaceX was in the ‘neutral’ territory on Stocktwits, while sentiment on Tesla dipped to ‘extremely bearish’ from ‘bearish’ a week ago.

Shares of Tesla have gained nearly 3% in the last 12 months.

Indonesian stocks rose 97 points, or 1.2%, to 8,329 on Friday afternoon, reversing steep losses in the prior two sessions sparked by concerns over ownership concentration and trading transparency following scrutiny from MSCI. Sentiment improved as the chief economic minister vowed to boost market transparency and corporate governance, with proposals to raise the minimum free-float requirement to 15% from 7.5%, expand pension and insurance fund exposure to 20% from 8%, and tighten checks on shareholder affiliations, including stakes below 5%.

The relief rally was further supported by the bourse’s CEO resignation, citing responsibility for eroded investor confidence.

Most sectors advanced, led by Bumi Resources (6.4%), Bukit Uluwatu Villa (6.1%), and Bank Central Asia (3.5%).

Despite the rebound, the market remains on track for a second straight weekly decline and its first monthly loss in seven months, rattled by lingering geopolitical risks and uncertainty over U.S. policy direction.

European equity markets were set for a higher open on Friday, snapping a sharp two-day decline as investors digested a wave of earnings reports from some of the region’s largest companies.

Markets were also buoyed by hopes that a stronger euro could help slow inflation, giving the European Central Bank more scope to ease borrowing costs.

Investors will also assess fourth-quarter economic growth data from across the region, with Eurozone GDP expected to slow on both a quarter-on-quarter and year-on-year basis.

On Thursday, German software giant SAP plunged 16% after its fourth-quarter results missed expectations for cloud revenue and the company warned that growth in its cloud backlog could decelerate this year.

In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were up 0.5% and 0.6%, respectively.

The Nikkei 225 Index rose 69 points or 0.13 percent on Friday to close at 53445 points.

Leading the gains are Casio Computer (15.30%), Konami (8.78%) and Chugai Pharma (6.22%).

Top losers were Toho Zinc (-7.89%), Tokuyama (-7.30%) and Fuji Electric (-6.04%).

The Nikkei 225 Index rose 69 points or 0.13 percent on Friday to close at 53445 points.

Leading the gains are Casio Computer (15.30%), Konami (8.78%) and Chugai Pharma (6.22%).

Top losers were Toho Zinc (-7.89%), Tokuyama (-7.30%) and Fuji Electric (-6.04%).