Asia-Pacific markets traded marginally higher on Wednesday, extending cautious gains as investors rotated away from heavily valued AI-linked technology stocks after a mixed session on Wall Street.
By 11:50 am AEDT (12:50 am GMT), Australia’s S&P/ASX 200 was up 0.2%, Japan’s Nikkei 225 gained 1%, and South Korea’s Kospi 200 rose 2.7%.
Japan’s SoftBank Group shares tumbled 6% after the company disclosed in an investor briefing document released at the same time as SoftBank's second-quarter results that it sold 32.1 million Nvidia shares in October and reduced its stake in T-Mobile, generating US$9.17 billion in proceeds.
On the data front, South Korea’s unemployment rate ticked up to 2.6% in October from 2.5% previously, while Australian Bureau of Statistics (ABS) figures showed a sharp rise in property investment.
The number of new investor loan commitments climbed 13.6% in the September quarter to 57,624 — the highest since March 2022.
Dr Mish Tan, ABS head of finance statistics, noted: “The number of investment loans in the September quarter has increased to its highest level since March Quarter 2022.
"Falling borrowing costs and low vacancy rates are favourable conditions for investors. Strength of lending for investment also pushed the total value of all new dwelling loans to a record high in September.”
Overnight in the U.S., major benchmarks ended mixed. The Dow Jones Industrial Average surged 1.2% to a fresh record close, the S&P 500 added 0.2%, while the Nasdaq Composite slipped 0.3% as investors took profits in major tech names.
In commodities, Brent crude rose 1.7% to settle at US$65.16 per barrel, while spot gold extended its two-week highs, up 0.3% to US$4,126.51 per ounce.
Chinese markets eased after recent highs, with the Shanghai Composite down 0.4% at 4,002.8 and the CSI 300 sliding 0.9% to 4,652.2.
Hong Kong’s Hang Seng Index edged 0.2% higher to 26,696.4, while India’s BSE Sensex gained 0.4% to 83,871.3.
European equities advanced on Tuesday, with London’s FTSE 100 rising 1.2% to a record 9,899.6. Germany’s DAX added 0.5% to 24,088.1, and France’s CAC 40 climbed 1.3% to 8,156.2.
