What Is the Lunar New Year and How Is It Determined
The Lunar New Year is based on the lunisolar calendar, with the new year beginning on the second new moon after the winter solstice. The date shifts each year, typically falling between January 21 and February 20, and the festival period lasts for 15 days, ending with the Lantern Festival. In 2024, the Lunar New Year started on February 10, marking the Year of the Dragon, and in 2025 it began on January 29, ushering in the Year of the Snake, according to official astronomical calculations and government announcements in China, South Korea, Vietnam, and other regional economies Lunar New Year dates and calendar details.
Governments and central banks publish official holiday calendars that designate the Lunar New Year as a public holiday, with China, Hong Kong, Taiwan, South Korea, Vietnam, Singapore, Malaysia, and Indonesia typically granting one to three days off, and many companies in global financial hubs observe a reduced trading week. The holiday affects labor supply chains, factory output, and retail sales, with China's seven-day Spring Festival holiday in 2024 generating an estimated 474 billion yuan in domestic tourism revenue, while cross-border travel and e-commerce shipments follow predictable pre- and post-holiday patterns Forbes analysis of Lunar New Year business impact.
How Lunar New Year Affects Financial Markets and Trading
Global equity, forex, and commodity markets often experience reduced liquidity and increased volatility around the Lunar New Year, with major exchanges in Asia, including the Hong Kong Stock Exchange, Shanghai Stock Exchange, Tokyo Stock Exchange, and Korea Exchange, closing for one to three days and sometimes extending the break to align with weekends. Historically, the days leading up to the holiday see a surge in outbound capital flows from mainland China and Southeast Asia, while the return of traders and settlement cycles in the first week after the holiday can drive sharp moves in Asian currencies, oil, and metals Investopedia on Lunar New Year market effects.
Trading Volume and Sector Performance
Trading volumes in Asian markets typically drop by 30 to 60 percent in the pre-holiday session, and sectors such as consumer discretionary, travel, luxury goods, and e-commerce see seasonal demand spikes before the festival, while logistics, shipping, and manufacturing capacity contracts as factories shut down for one to two weeks. Companies listed on U.S. exchanges with significant China or Asia-Pacific exposure, including Apple, Tesla, and semiconductor suppliers, often report Lunar New Year-related revenue guidance and supply chain timing in their earnings calls and SEC filings, and investors monitor these disclosures for clues on first-quarter performance SEC EDGAR filings for company disclosures.
How Companies and Consumers Prepare for and Engage With Lunar New Year
Corporations plan inventory, marketing campaigns, and supply chain logistics months in advance around the Lunar New Year, with global brands such as Starbucks, McDonald's, and luxury houses launching limited-edition products and digital red envelope promotions, while logistics firms like FedEx, DHL, and Alibaba's Cainiao adjust capacity and delivery windows to manage the surge in pre-holiday e-commerce and the post-holiday return-to-work rush. In 2024, Alibaba reported a 10 percent year-over-year increase in New Year's Eve sales on its platforms,