Asian Equities Rise Post US Tech Rally – Asia Market Wrap
Asian equities rose in thin pre-holiday trade, supported by a rise in technology sectors after some of the world’s largest technology companies lifted US benchmarks on Monday.
Shares in mainland China and Hong Kong were among the top performers, while Japan’s results were uneven. Taiwan Semiconductor Manufacturing set a new record high, while Honda surged after announcing a share purchase. US equity futures were steady in Asia as a gauge of the “Magnificent Seven” technology megacaps rose on Wall Street.
MSCI’s Asian equities benchmark is still on track for its first quarterly loss since September 2023, falling 6.8% as the S&P 500 rose 3.7%. In recent months, sentiment in Asia has deteriorated due to concerns about Trump’s prospect of greater global tariffs, a stronger dollar, and China’s slow economic recovery.
Nissan shares fell as much as 7.3% in Tokyo after the company confirmed negotiations with Honda over a potential business combination. Honda’s stock price rose as much as 14% after it announced plans to buy back up to ¥1.1 trillion ($7 billion) in stock. TSMC surged as much as 1.4% in Taipei, momentarily topping its record on November 8, following increases in US chip stocks, including important customer Nvidia. The stock is now up more than 80% this year.
