Asian Stocks Rise as Hong Kong Tech Leads, SoftBank Drags Japan
Most Asian stocks advanced on Wednesday, supported by strong gains in Hong Kong’s technology sector, while Japan’s Nikkei 225 was weighed down by sharp losses in SoftBank Group following its sale of the firm’s entire Nvidia stake.
Regional sentiment improved after Wall Street’s overnight rebound, where cyclical and economically sensitive sectors advanced on optimism that the U.S. government shutdown could end this week. Tech stocks lagged, with Nvidia Corporation (NASDAQ: NVDA) slipping 2.9% after news of SoftBank’s sale.
S&P 500 Futures rose 0.2% as investors awaited a key vote in Congress to reopen the government.
Hong Kong Leads Asia on Tech Strength
Hong Kong’s Hang Seng Index outperformed regional peers, climbing 1% in morning trade. Gains were driven primarily by technology and health-tech stocks, including JD Health International (HK:6618), up 5.8%, and Alibaba Health Information Technology (HK:0241), which gained 3.6%.
Xiaomi Corp (HK:1810) jumped 3.8% after data from the China Passenger Car Association showed its YU7 EV model outsold Tesla’s Model Y in October for the first time. Xiaomi sold 48,654 electric vehicles, including 33,662 YU7 units, surpassing Tesla’s 26,006 sales in China that month.
Wednesday’s gains lifted the Hang Seng to its highest level in over a month, nearing early-October peaks. In contrast, Mainland Chinese markets were subdued, with the Shanghai Composite and CSI 300 trading flat to lower amid reports that Beijing may restrict rare earth exports to the U.S. military.
SoftBank Slumps, Limiting Japan’s Gains
In Japan, the Nikkei 225 remained flat as a 10% drop in SoftBank Group Corp. (TYO:9984) offset gains elsewhere. SoftBank confirmed it had sold its entire Nvidia stake—31.2 million shares worth $5.8 billion—in October. The sale overshadowed the firm’s strong fiscal Q2 earnings, which reflected robust AI investment returns.
Among other notable movers, Sony Corp (TYO:6758) rose 3% after posting better-than-expected earnings and raising its full-year forecast. Strength in cyclical sectors helped the TOPIX Index advance 1% despite SoftBank’s drag.
Elsewhere in Asia, markets were largely positive but cautious. South Korea’s KOSPI rose 0.8%, supported by cyclical gains that offset declines in semiconductor stocks. Australia’s ASX 200 added 0.2%, while Singapore’s Straits Times Index gained 0.3%. In India, Nifty 50 Futures slipped 0.2% after three consecutive sessions of gains, signaling mild profit-taking.
