[Asian Stock Markets Summary]Most Asian Markets Rise on US Tech Rally; Japan Mixed

(Seoul=Yonhap Infomax) International Economics Department = On the 25th, Asian equity markets mostly advanced, buoyed by a rally in US technology stocks.

Chinese, Hong Kong, and Taiwanese markets climbed, led by gains in technology shares, while Japan ended mixed as profit-taking weighed on sentiment.

Japan

Japanese equities finished mixed, with profit-taking offsetting overnight gains on Wall Street.

According to the Yonhap Infomax Global Stock Index (6511), the Nikkei 225 closed up 33.64 points, or 0.07%, at 48,659.52.

The TOPIX index slipped 6.84 points, or 0.21%, to end at 3,290.89.

After a holiday closure in the previous session, Japanese stocks surged at the open, tracking the strong performance of US markets and briefly approached the 50,000 mark.

However, gains faded by midday as foreign investors sold Nikkei futures to lock in profits, erasing morning advances and leaving the market rangebound.

SoftBank Group Corp. (TSE:9984) tumbled more than 10%, exerting significant downward pressure on the index.

The sell-off was attributed to concerns over intensifying competition with OpenAI—backed by SoftBank—after Google’s next-generation AI model, Gemini 3, received positive market reviews.

Telecom services provider KDDI Corp. (TSE:9433) and Sony Group Corp. (TSE:6758) both fell over 2%.

Bond yields rose.

With Japanese financial markets closed the previous day, comments over the weekend from Bank of Japan (BOJ) Policy Board member Kazuyuki Masu, suggesting an early rate hike, pushed yields higher.

Masu stated, “I can’t say which month, but in terms of distance, we are close,” adding that a BOJ rate hike decision is “drawing nearer.”

According to Yonhap Infomax Overseas Bond Rates (screen 6531), the 10-year Japanese government bond yield rose 1.48 basis points to 1.8024% at the close.

The 30-year yield, a super-long tenor, gained 0.58 basis points to 3.3344%, while the 2-year yield climbed 1.00 basis point to 0.9694%.

Amid heightened market volatility, investors remained cautious, with concerns that demand for the 40-year bond auction on the 26th may be weak.

The dollar-yen exchange rate slipped 0.07% to 156.70 yen.

China

Chinese stocks advanced, supported by renewed enthusiasm for artificial intelligence (AI) and easing tensions with the United States.

According to the Yonhap Infomax Global Stock Index (screen 6511), the Shanghai Composite Index closed up 33.26 points, or 0.87%, at 3,870.02.

The Shenzhen Composite Index finished 33.97 points, or 1.42%, higher at 2,424.95.

The Shanghai market opened higher and maintained an upward trajectory throughout the session.

Positive sentiment from the US, where Google’s Gemini 3.0 AI service received strong reviews and fueled a tech rally, spilled over into Chinese markets.

Technology shares led the advance in China, with AI-related and 5G telecom stocks outperforming. Semiconductor firm GigaDevice Semiconductor Inc. (SHS:603986) surged over 6%.

Expectations for reduced US-China tensions also supported the market, after former US President Donald Trump hinted at a “big event” involving reciprocal state visits between the two countries next year.

Overnight, Trump posted on his social media platform Truth Social that he had a “very good call” with Chinese President Xi Jinping, discussing topics including the Ukraine-Russia situation, fentanyl, soybeans, and other agricultural products.

Trump said, “President Xi invited me to visit Beijing in April next year, and I accepted. In return, I invited him for a state visit to the US later that year.”

Anticipation of new stimulus measures ahead of the Central Economic Work Conference (CEWC) in December, where China’s annual growth targets are set, also added upward pressure.

The yuan was set stronger.

On the morning of the 25th, the dollar-yuan central parity rate was fixed at 7.0826 yuan, down 0.0021 yuan (0.03%) from the previous session, indicating a firmer yuan against the dollar.

Hong Kong

Hong Kong stocks rose, driven by strength in technology shares.

The Hang Seng Index gained 178.05 points, or 0.69%, to close at 25,894.55, while the Hang Seng China Enterprises Index (H-share index) advanced 78.89 points, or 0.87%, to 9,158.31.

Alibaba Group Holding Ltd. (HK:9988) climbed over 1%, and Xiaomi Corp. (HK:1810) jumped more than 3% after Chairman Lei Jun purchased company shares.

Taiwan

Taiwanese equities tracked US gains.

The Taiwan Weighted Index ended down 407.93 points, or 1.54%, at 26,912.17.

jykim@yna.co.kr

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