Asia stocks rise; HK buoyed by tech, Japan held back by Softbank losses

Most Asian stocks rose on Wednesday with Hong Kong shares rebounding sharply on strength in local technology names, while losses in Softbank Group, after it sold its entire stake in Nvidia, hampered Japan’s Nikkei index.

Regional markets took some positive cues from Wall Street’s overnight session, where cyclicals and economically sensitive sectors advanced on hopes that a prolonged U.S. government shutdown will end this week. Tech lagged, with NVIDIA Corporation (NASDAQ:NVDA) losing 2.9% after the Softbank sale.

S&P 500 Futures rose 0.2% with focus squarely on a Wednesday vote to reopen the government.

Hong Kong stocks surges on tech strength
Hong Kong’s Hang Seng index was among the better performers in Asia, rising 1% in morning trade.

The index was supported chiefly by gains in tech and health-tech stocks, with Jd Health International (HK:6618) and Alibaba Health Information Technology Ltd (HK:0241) up 5.8% and 3.6%, respectively.

Electronics giant Xiaomi Corp (HK:1810) rose 3.8% after data from the China Passenger Car Association showed the company’s YU7 beat the Tesla Inc (NASDAQ:TSLA) Model Y for the first time in October.

Xiaomi sold a total 48,654 EVs in October, of which 33,662 were the YU7. This figure was higher than Tesla’s total China sales in China, of 26,006 vehicles.

Wednesday’s gains put the Hang Seng at an over one-month high, and back in sight of peaks hit in early-October.
Mainland China indexes were less upbeat, with the Shanghai Shenzhen CSI 300 and Shanghai Composite indexes moving in a flat-to-low range. Sentiment towards Chinese markets was hurt by reports stating that the country was preparing to restrict the US military from its rare earths.

Nikkei gains limited by Softbank drop; Sony rises on positive earnings
Japan’s Nikkei 225 index was flat, as gains in cyclicals and Sony Corp (TYO:6758) were largely offset by a tumble in SoftBank Group Corp. (TYO:9984).

Softbank slid as much as 10% and was the biggest weight on the Nikkei, after the company disclosed it sold off its entire stake in market darling Nvidia Corp– 31.2 million shares for $5.8 billion– in October.

The disclosure largely overshadowed stronger than expected fiscal second quarter earnings from Softbank, as the tech conglomerate reaped strong returns on its aggressive investments in artificial intelligence.

Among other movers, Sony Corp rose about 3% after it clocked stronger than expected earnings and also hiked its annual guidance.

Strength in cyclicals helped Japan’s TOPIX index rise 1%.

Broader Asian markets were mostly positive, although gains were limited on caution over the U.S. economy and interest rates. South Korea’s KOSPI added 0.8%, with gains in cyclicals offsetting losses in major chipmaking stocks.

Australia’s ASX 200 rose 0.2%, while Singapore’s Straits Times index added 0.3%.

Futures for India’s Nifty 50 index fell 0.2%, pointing to some profit-taking after the index clocked three straight days of gains.