Asia-Pacific Markets Show Mixed Performance
Asia-Pacific markets experienced a mixed performance on Friday, with some indices rising while others declined. Hong Kong’s Hang Seng Index opened lower, reflecting the ongoing uncertainty in the region.
Following a subdued session on Wall Street, Asian markets showed varied reactions. Australia’s ASX/S&P 200 managed to add 0.19% to reach 8,634.6. However, Japan’s benchmark Nikkei 225 index faced a significant drop, losing 1.05% to close at 50,491.87. The Topix also fell by 1.05%, reaching 3,362.56. Yields on the Japanese 10-year government bond rose to 1.94%, marking the highest level since July 2007, according to data from LSEG.
South Korea’s Kospi index saw an increase of 1.78% to 4,100.05, while the Kosdaq Index retreated slightly by 0.55% to 924.74. Hong Kong’s Hang Seng Index added 0.5%, and the mainland CSI 300 was 0.84% higher at 4,584.54.
One of the most notable performances came from Moore Threads, a Beijing-based graphics processing unit manufacturer often referred to as “China’s Nvidia.” The company’s shares soared by more than 400% on its debut in Shanghai following a $1.1 billion listing. This surge highlights the growing interest in tech stocks in the region.
Tech Stocks and Market Concerns
Markets are closely monitoring tech stocks amid concerns about a potential bubble. Shares of SoftBank rose nearly 4%, continuing a three-day gaining streak. However, the stock later pared some gains, closing 1.02% higher.
Founder Masayoshi Son recently downplayed the decision to offload the conglomerate’s entire Nvidia stake, stating he “was crying” over parting with the shares. His comments reflect the complex emotions surrounding major investment decisions in the tech sector.
India’s Nifty 50 index rose 0.2% after the Reserve Bank of India cut its policy rate by 25 basis points to 5.25%, matching forecasts from economists. The monetary policy committee delivered a unanimous reduction, citing “weakness in some key economic indicators.” Despite this, headline inflation has eased significantly and is expected to be revised lower in the first quarter of 2025, according to RBI governor Sanjay Malhotra.
U.S. Markets Remain Mixed
Overnight in the United States, the three major averages traded mixed. The S&P 500 and Nasdaq Composite rose slightly as investors prepared for next week’s interest rate decision from the Federal Reserve. The broad-based index inched up 0.11% to close at 6,857.12, while the Nasdaq Composite traded higher by just 0.22% to finish at 23,505.14. The Dow Jones Industrial Average slipped slightly by 31.96 points, or 0.07%, to 47,850.94.
Key Takeaways
- Australia: ASX/S&P 200 gained 0.19%.
- Japan: Nikkei 225 and Topix both dropped by 1.05%.
- South Korea: Kospi increased by 1.78%, while Kosdaq decreased by 0.55%.
- Hong Kong: Hang Seng Index and CSI 300 showed modest gains.
- Moore Threads: Shares surged over 400% on its debut in Shanghai.
- SoftBank: Gained nearly 4% but later trimmed gains.
- India: Nifty 50 rose 0.2% after a rate cut.
- U.S. Markets: Mixed performance with slight gains in S&P 500 and Nasdaq, while Dow Jones slipped.
These developments highlight the dynamic nature of global financial markets and the factors influencing investor sentiment across different regions.