Asian equities struggled to find footing on Tuesday, with most major indices finishing in the red following a retreat on Wall Street. The notable exception was Tokyo’s Nikkei 225, which bucked the regional trend to rise 0.2%, closing at 50,691.39. In contrast, Hong Kong’s Hang Seng lost 0.8% and the Shanghai Composite edged lower as traders kept a wary eye on Beijing’s Central Economic Work Conference for policy updates.
In Australia, the S&P/ASX 200 fell 0.2% to 8,607.80. The decline came after the Reserve Bank of Australia decided to leave its cash rate unchanged at 3.6%, a move that offered little new stimulus for the market. South Korea’s Kospi and Taiwan’s Taiex also suffered losses, falling 0.3% and 0.5% respectively, as technology stocks faced pressure despite positive news for chip giant Nvidia.
Nvidia shares rose in after-hours trading following news that the U.S. government would allow the sale of H200 chips to approved Chinese buyers. While this is a boon for the chipmaker, the broader tech sector in Asia remained cautious. In the U.S., the Nasdaq composite had edged 0.1% lower the previous day, contributing to the weak sentiment across the Pacific.
Corporate maneuvering in the U.S. also captured investor attention. A hostile takeover bid by Paramount for Warner Bros. Discovery shook up the media sector, hurting Netflix’s stock. Meanwhile, IBM’s $11 billion purchase of Confluent highlighted the ongoing rush to secure AI capabilities. These specific corporate stories provided volatility but weren’t enough to lift the overall market averages.
Currency markets were relatively quiet, with the dollar rising slightly to 155.96 yen and the euro climbing to $1.1646. Oil prices continued to slide, with Brent crude falling to $62.36 per barrel. As the week progresses, the focus remains on the U.S. Federal Reserve, with global markets hoping for a rate cut that could help stabilize sentiment and support economic growth.