Key Moments
- Japan’s Nikkei 225 climbed 1.6% to 50,063.65, driven by strong gains in technology names including Tokyo Electron and Adventest, while SoftBank Group Corp. jumped more than 8%.
- Chinese benchmarks retreated after weaker factory data, with Hong Kong’s Hang Seng down 1.1% to 25,797.24 and the Shanghai Composite lower by 0.3% to 3,885.36.
- U.S. markets advanced as the S&P 500 added 0.2% to 6,829.37, supported by sharp moves higher in Boeing (+10.1%) and MongoDB (+22.2%), while Treasury yields and bitcoin steadied.
Asia-Pacific Markets Show Split Performance
Asian equity indexes were mixed Wednesday following a steadier session in U.S. markets, where both Treasury yields and bitcoin stabilized. U.S. stock futures advanced and crude oil prices edged higher in early trading.
Japan’s Nikkei 225 surged 1.6% to 50,063.65, bolstered by a strong rally in technology shares. Tokyo Electron gained 5.6%, while Adventest, a producer of computer chip testing equipment, jumped 6.9%.
SoftBank Group Corp. also delivered a notable performance, climbing more than 8%. The move followed reports that founder Masayoshi Son regretted selling shares in computer chip maker Nvidia to fund other investments. SoftBank’s stock had previously fallen after the company disclosed last month that it had sold the Nvidia stake for $5.8 billion.
In South Korea, the Kospi advanced 1.2% to 4,042.40, aided by strength in the technology sector. Shares of Samsung Electronics, the country’s largest company, rose 1.8%.
Chinese markets moved in the opposite direction after data pointed to weaker factory activity. Hong Kong’s Hang Seng index dropped 1.1% to 25,797.24, and the Shanghai Composite index slipped 0.3% to 3,885.36. Australia’s S&P/ASX 200 inched up 0.2% to 8,595.20.
Regional Index Moves
| Index | Market | Move | Level |
|---|---|---|---|
| Nikkei 225 | Japan | +1.6% | 50,063.65 |
| Kospi | South Korea | +1.2% | 4,042.40 |
| Hang Seng | Hong Kong | -1.1% | 25,797.24 |
| Shanghai Composite | Mainland China | -0.3% | 3,885.36 |
| S&P/ASX 200 | Australia | +0.2% | 8,595.20 |
Wall Street Edges Higher on Big-Cap Winners
On Tuesday, major U.S. benchmarks advanced. The S&P 500 gained 0.2% to 6,829.37, the Dow Jones Industrial Average increased 0.4% to 47,474.46, and the Nasdaq composite added 0.6% to 23,413.67.
Boeing rallied 10.1%, emerging as one of the primary drivers of the S&P 500’s rise. Chief Financial Officer Jay Malave said the company anticipates growth next year in an underlying metric of cash generation.
MongoDB also supported the broader market, surging 22.2% after reporting quarterly results that exceeded analysts’ expectations.
These gains helped counter a 6.8% decline in Signet Jewelers. The company issued a holiday season revenue outlook that fell short of analysts’ projections and described expectations for “a measured consumer environment.”
A further sign of caution around U.S. consumers came from Procter & Gamble. Shares of the household products giant, which owns brands such as Tide detergent and Ivory soap, slipped 1.1% after remarks from its chief financial officer.
While aggregate U.S. economic data have remained resilient, performance has diverged across income groups. Lower-income households have been pressured by elevated prices, whereas wealthier households have benefited from a stock market that is trading within 1% of its late-October record high.
Rates Market Steadies After BOJ Signals and Fed Hopes
U.S. Treasurys saw calmer price action after a sharp move in yields the previous day. The 10-year Treasury yield eased to 4.08% from 4.09% late Monday, and the 2-year yield declined to 3.51% from 3.54%.
Higher yields can weigh on valuations across asset classes, with the most richly priced segments typically absorbing the largest pressure.
Monday’s rise in yields followed commentary from the governor of the Bank of Japan suggesting that rates there may move higher soon. At the same time, expectations remain elevated that the Federal Reserve will lower its policy rate at its meeting in Washington next week.
Tan Boon Heng of Mizuho Bank in Singapore said the Bank of Japan is likely to raise its benchmark rate at its Dec. 19 meeting because inaction could trigger selling of the Japanese yen.
“Yet, delivering a ‘done deal’ hike may perversely deny any appreciable JPY (Japanese yen) gains, whilst boosting long-end yields,” he said in a report.
The Federal Reserve has already reduced its overnight interest rate twice this year in an effort to support a cooling labor market. However, policymakers face the risk that lower borrowing costs could reignite inflation, which has stayed above the Fed’s 2% target.
Further complicating the policy backdrop, an earlier U.S. government shutdown delayed the release of data on employment and other key economic indicators.
Bitcoin, Oil, and Currencies
In early Wednesday dealings, bitcoin, which had dropped below $85,000 on Monday as global bond yields climbed, rebounded to $94,000.
In energy markets, U.S. benchmark crude oil inched up 3 cents to $58.67 per barrel. Brent crude, the international benchmark, rose 4 cents to $62.49 per barrel.
On the foreign exchange front, the U.S. dollar slipped to 155.68 Japanese yen from 155.87 yen. The euro firmed to $1.1645 from $1.1626.
AP Business Writers Matt Ott and Stan Choe contributed.
Analyst Focus Shifts Beyond SoftBank
MarketBeat provided an overview of top ideas for investors, highlighting five stocks that leading analysts are recommending to clients as potential buys ahead of broader market recognition. According to MarketBeat, these analyst favorites do not currently include SoftBank Group, which holds a Hold rating among analysts.
MarketBeat noted that top-rated analysts see better opportunities in other names and have identified five stocks they believe are more attractive investments than SoftBank Group.
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