HomeLatest NewsSoftBank boosts Japan stocks, China rally falters

SoftBank boosts Japan stocks, China rally falters

Asian Stocks Surge, Led by Japan’s Nikkei 225

Asian Stocks Rise on Strength in SoftBank and Technology Sector

Most Asian stocks rose on Thursday, with Japan’s Nikkei 225 leading gains on strength in SoftBank and the technology sector, while a rebound in Chinese markets appeared to have stalled after weak inflation data.

Regional Stocks Follow Positive Lead from Wall Street

Regional stocks also took a positive lead-in from Wall Street, as U.S. benchmarks closed at record highs on a slew of strong earnings. Waning concerns over higher-for-longer interest rates also spurred gains in risk-driven stock markets.

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Japan’s Nikkei 225 Surges on SoftBank Rally

The Nikkei 225 was the best performer in Asia on Thursday, rising 1.7% and trading just below a 34-year high. Gains in the Nikkei were fueled chiefly by technology stocks, with investment conglomerate SoftBank Group Corp. leading the charge with a nearly 10% bounce.

SoftBank Poised for Windfall from Chip Designing Subsidiary

SoftBank hit a six-month high as it looked poised to book a nearly $16 billion windfall from an overnight rally in its chip designing subsidiary Arm Holdings ADR, which forecast stronger earnings on increased demand for artificial intelligence.

Japanese Tech Firms Advance

Other Japanese tech firms also advanced, with chip firms Advantest Corp. and Tokyo Electron Ltd. up 7% and 2.7%, respectively. Automobile giant Toyota Motor rose nearly 4% and hit a record high for a third consecutive session, after clocking bumper quarterly earnings earlier this week.

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Other Asian Stocks Also Advance

Other Asian stocks also advanced, tracking a positive overnight close on Wall Street. Australia’s ASX 200 rose 0.5% and came within spitting distance of a record high, while South Korea’s KOSPI rose 0.6% on gains in tech stocks- particularly heavyweight chipmakers.

Chinese Stocks Lag on Deflation Risks

Chinese stocks lagged their peers on Thursday, as a rebound rally now appeared to be running out of steam. Weak inflation data and losses in tech giant Alibaba Group also weighed.

Weak Earnings from Alibaba Group

Weak earnings from Alibaba Group also raised more concerns over sluggish consumer spending. The e-commerce giant slid nearly 6% in Hong Kong trade after clocking weaker-than-expected earnings for the December quarter.

Losses in Alibaba dragged Hong Kong’s Hang Seng index down 1.1%. The index was the worst performer in Asia for the day, with weakness in Chinese stocks setting a dour tone before the week-long Lunar New Year holiday.

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