International News 06 January 2026
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Australian Shares Flat as Mining Gains Offset Tech and Consumer Weakness
Australian equities traded sideways in early Monday dealings (January 5, 2026), as strong gains in mining stocks driven by a surge in metal prices offset losses in consumer and technology sectors. The benchmark S&P/ASX 200 index was little changed at 8,726.7 as of 00:20 GMT. Mining stocks rose about 1%, supported by a jump in base metal prices, with nickel hitting a 14-month high after delays in approving Vale Indonesia’s annual production plan, easing concerns over global oversupply. Copper also set a fresh record, lifting heavyweights BHP Group and Rio Tinto by 0.9% and 1.3%, respectively. Gold miners edged up 0.3% alongside higher gold prices, while the energy sector gained 1.5%. These gains were capped by declines in rate-sensitive and growth sectors. Consumer discretionary stocks fell 1.3%, technology slid 2.1%, property stocks dropped 0.7%, and financials eased 0.2%. Oil prices weakened in early Asian trade as ample global supply outweighed concerns over potential disruptions following the U.S. arrest of Venezuelan President Nicolás Maduro. Investors are now awaiting Australia’s November monthly inflation data due Wednesday, expected to ease slightly to 3.7% from 3.8%. Elsewhere in the region, Japan’s Nikkei jumped 2.0%, S&P 500 E-mini futures edged up 0.07%, and New Zealand’s S&P/NZX 50 rose 0.3%.
Japan Manufacturing Shows Signs of Stabilization at End-2025
Japan’s manufacturing activity showed signs of stabilizing in December 2025 as demand pressures eased after five consecutive months of deterioration. The S&P Global Japan Manufacturing PMI rose to 50.0 in December from 48.7 in November, marking the threshold between contraction and expansion. According to S&P Global, the decline in new orders was the mildest since May 2024, with some firms reporting better sales supported by new projects and stronger-than-expected customer spending, particularly in consumer and investment goods. However, challenges remain uneven across sectors. Producers of intermediate goods continued to face weak conditions, while export orders still fell, albeit at a slower pace, weighed down by softer demand from Asia, especially the semiconductor sector. Business confidence over the next 12 months edged slightly lower but stayed above its long-term average, with expectations that new product launches and stronger demand from automotive and semiconductor industries will support manufacturing in 2026. At the same time, firms remain cautious about global economic risks, rising production costs, and yen weakness, as input price inflation hit its highest level since April and the Bank of Japan signaled further policy tightening after raising interest rates to a 30-year high.
Nikkei Jumps Over 2% as Semiconductor Stocks Rally on Strong U.S. Chip Gains
Japan’s Nikkei 225 surged more than 2% on the first trading day of 2026, driven by a sharp rally in semiconductor-related stocks following strong gains in the U.S. chip sector. As of 00:30 GMT on Monday (January 5, 2026), the Nikkei climbed 2.37% to 51,533.22, snapping a two-session losing streak from the end of last year. The broader Topix index also rose 1.7% to a fresh record high of 3,467.13. Technology and chip stocks led the advance, with chip-testing equipment maker Advantest jumping 5.1% and Tokyo Electron gaining 5.7%. SoftBank Group rose 4%, while fiber-optic cable maker Fujikura added nearly 4%. The upbeat sentiment followed Wall Street’s strong finish on Friday, when the Dow Jones and S&P 500 posted gains and the Philadelphia SE Semiconductor Index jumped about 4%. Nearly all sectors on the Tokyo Stock Exchange advanced, with non-ferrous metals leading the market, up around 5%.