Asian markets: Hong Kong ends the session mixed, while Tokyo outperforms with a +2.64% rally, buoyed by Nvidia’s strong earnings

Indices

The main Asian indices are showing a mixed performance, reflecting a cautious stance following recent rallies. The Nikkei 225 (^N225) is currently trading at 49823.94, marking a robust rise of 2.64998, primarily fueled by strong gains in technology stocks. This upward momentum is interpreted as ongoing investor confidence in Japan’s innovation and tech sectors. In contrast, the Hang Seng Index (^HSI) in Hong Kong stands at 25835.58, with a marginal increase of 0.01904713, signaling persisting volatility and investor caution. The SSE Composite Index (000001.SS) closed at 3931.0512, recording a decline of -0.39751, reflecting ongoing concerns over China’s property sector and a cautious outlook from the central bank. All three indices demonstrate flat short-term micro-trend signals, highlighting a prevailing wait-and-see attitude and a lack of strong directional conviction.

Stocks

Japanese equities are led by technology and innovation-driven names. Advantest Corp. (6857.T), Screen Holdings Co. (7735.T), and TDK Corp. (6762.T) have each advanced over 4, riding the positive momentum from robust global tech earnings, particularly Nvidia’s quarterly report. In China, JD Health International (6618.HK) and Alibaba Health Information Technology Ltd (0241.HK) are among the top performers, with gains of 5.8 and 3.6, respectively, driven by renewed strength in the local technology sector. However, Xiaomi Group (1810.HK) has slipped -0.4, pressured by concerns over rising chip costs. In Japan, the trend suggests continued outperformance by tech and innovation, while in China, sector rotation remains sharp, with property and electric vehicle stocks under pressure.

Economic News

Nvidia’s (NVDA) blowout earnings report, with quarterly revenues of 57, has lifted sentiment in tech-heavy Asian markets, particularly in Japan. Conversely, the People’s Bank of China’s recent decision to maintain loan prime rates underscores a cautious approach amid ongoing recovery concerns, especially within the property sector. Recent economic data from Japan indicate resilience in large manufacturers, with the Tankan index for large manufacturers at 14, despite a manufacturing PMI contraction to 48.5. In China, the World Bank has revised the 2025 GDP growth forecast upward to 4.8, providing some medium-term optimism despite near-term challenges.

Economic Events

This week is marked by several high-impact events. In China, the National People’s Congress is ongoing and is expected to yield guidance on future policy support, while the People’s Bank of China’s monetary policy decision is being closely watched for its impact on asset classes. In Japan, the Bank of Japan will unveil its quarterly economic outlook, which may provide further insight into monetary policy and fiscal expansion strategies. Market participants are also monitoring the Hong Kong Monetary Authority’s upcoming financial stability report, which could influence regional risk sentiment and capital flows.

Market Sentiment

Overall market sentiment across Asia is cautiously optimistic yet underpinned by significant indecision. The strong rally in the Nikkei 225 and outperforming Japanese tech stocks reflect confidence in innovation and pro-growth reforms, but the flat trend signals and recent volatility highlight ongoing caution. In China, optimism is selective and sector-driven, with technology and mining favored while property and electric vehicles face persistent headwinds. The Hang Seng Index’s subdued movement and flat micro-trend reinforce the sense of investor wariness, as traders remain nimble and alert to policy and macroeconomic signals before taking new positions.

Please note that the analysis is for informational purposes only and does not constitute financial advice. Users should conduct their own research.