[Asia Markets-Close] Broad Gains Following US Rally

(Seoul=Yonhap Infomax) International Economics Department = On the 24th, Asian equity markets closed broadly higher, buoyed by a global risk-on sentiment after dovish remarks from John Williams, President of the Federal Reserve Bank of New York.

In a speech, Williams stated, "I still see the possibility of further adjustments to the target range for the federal funds rate (FFR) in the near term to move policy closer to a neutral stance."

Japan

Japanese markets were closed for a substitute holiday marking Labor Thanksgiving Day.

China

Chinese stocks initially fell to a six-month low during intraday trading but rebounded in the afternoon on bargain hunting, ending the session slightly higher.

According to the Yonhap Infomax Global Stock Index (screen number 6511), the Shanghai Composite Index closed at 3,836.77, up 1.88 points (0.05%) from the previous session.

The Shenzhen Composite Index finished at 2,390.98, up 20.66 points (0.87%).

Chinese equities were pressured in the morning by weakness in semiconductor shares, with the index hitting a six-week low. The decline was attributed to reports that the US is considering allowing exports of Nvidia's H200 semiconductor chips, which weighed on Chinese semiconductor stocks seen as alternatives to Nvidia products.

However, the market reversed course in the afternoon as bargain hunters stepped in.

Cambricon Technologies Corp. (SHS:688256), a Chinese AI chip designer, dropped 2.5% in the morning to a one-month low but rebounded to close higher by the end of the session.

Expectations for new stimulus measures ahead of the Central Economic Work Conference (CEWC) in December also supported the market. The annual CEWC sets China's economic policy direction and growth targets for the coming year.

The global risk appetite triggered by Williams' dovish comments on November 21 also provided a positive backdrop for Chinese equities.

The yuan appreciated against the US dollar.

The dollar-yuan central parity rate was set at 7.0847 yuan, down 0.0028 yuan (0.04%) from the previous session, indicating a stronger yuan against the dollar.

Hong Kong

Hong Kong stocks advanced, led by gains in Alibaba Group Holding Ltd. (HK:9988).

The Hang Seng Index closed at 25,716.50, up 496.48 points (1.97%), while the Hang Seng China Enterprises Index rose 159.64 points (1.79%) to 9,079.42.

Alibaba shares surged as much as 6% intraday, driving the index higher, after its newly launched AI chatbot "Qwen" received positive market feedback. Qwen surpassed 10 million downloads within its first week of release. Alibaba described Qwen as "the most powerful personal AI assistant model" and announced plans to launch it globally.

Williams' dovish remarks also reinforced risk appetite for equities, supporting the market's upward momentum.

Taiwan

Taiwanese stocks tracked Wall Street's gains, with the Taiex Index closing at 26,504.24, up 69.30 points (0.26%) from the previous session.

jykim@yna.co.kr

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