J&J(US:JNJ) The Economic Times·2026-01-19 05:54Corporate Developments - The U.S. earnings season is gaining momentum, with major companies in technology, healthcare, and manufacturing set to report results, including Netflix, Johnson & Johnson, and Intel, which are expected to influence market sentiment and provide insights on demand trends and profit margins [6]. - Bank earnings have shown a mixed start to the season, making forward-looking commentary from corporate leaders crucial for maintaining optimism regarding stronger earnings growth anticipated in 2026 [6]. Economic Indicators - China is expected to release its fourth-quarter and full-year gross domestic product data, with expectations that it has met its growth target, supported by resilient exports despite ongoing trade frictions with the United States [2][6]. - China recorded a trade surplus in 2025, highlighting the importance of overseas demand in driving growth, although investors remain cautious due to challenges from a prolonged property downturn and weak domestic consumption [2][6]. - Additional data on house prices and retail sales in China will be closely monitored for indications of the need for further policy support [3][6]. Market Reactions - Japanese equities have surged to record highs as investors react positively to the potential for a snap election called by Prime Minister Sanae Takaichi, which is seen as a high-stakes gamble that could lead to significant fiscal stimulus [6]. - The yen and longer-dated government bonds in Japan have weakened amid the political developments, while the Bank of Japan's policy meeting is expected to maintain interest rates following a recent hike [6].