Asian markets follow Wall Street’s gains thanks to the tech rebound: Nikkei leads with +1.22%

Indices

The major Asian indices are exhibiting modest gains, reflecting a cautiously optimistic mood following Wall Street’s recent rally and expectations of monetary easing. The Nikkei 225 50167.1 advanced by 1.22688, a movement interpreted as heightened investor confidence in Japan’s innovation and tech sectors, especially after robust global tech earnings and anticipated U.S. rate cuts. The Hang Seng Index 25945.94 posted a slight rise of 0.06884425, suggesting persistent volatility and investor caution amid sectoral divergences. The SSE Composite Index 3875.2594 climbed by 0.28672, indicating tentative optimism but ongoing concerns over China’s property sector and a cautious outlook from policymakers. All three indices currently display flat short-term micro-trend signals, underscoring a market-wide wait-and-see stance and the absence of strong buy or sell signals.

Stocks

Stock performance across the region is highly sector-driven, with technology and innovation names in Japan leading advances. Japanese tech stocks such as SoftBank Group (9984.T) and Kioxia Holdings (6590.T) have rebounded, with SoftBank rising 3.6 and Kioxia up 7.9, reflecting renewed appetite for tech and innovation. In Hong Kong, Xiaomi Corp (1810) is among the most active, trading at HK$38.08 and up 1.01, while health and solar stocks like JD Health (6618) and Xinyi Solar (0968) have suffered declines of -8.60 and -7.51 respectively, highlighting rotating risk sentiment. In China, while no specific stock data is provided, the general trend favors technology and mining over property and electric vehicle shares, which remain under pressure.

Economic News

Recent economic updates have significantly influenced market direction. In Japan, the government's announcement of a new economic stimulus package, including the issuance of 11 trillion yen in bonds, has supported sentiment and underpinned equity gains. The anticipated U.S. Federal Reserve interest rate decision on December 10 has further boosted expectations for monetary easing across Asian markets. In China, industrial profit growth for major firms has slowed to 1.9 year-on-year for the first ten months of 2025, down from 3.2, signaling headwinds for the industrial sector and tempering the otherwise positive tone.

Economic Events

Key economic events shaping the market outlook include the upcoming U.S. Federal Reserve policy meeting on December 10, which is widely expected to result in a rate cut. In Japan, the Bank of Japan’s quarterly economic outlook and the release of the National CPI on November 20 are being closely watched for guidance on future fiscal and monetary policy. In China, ongoing policy meetings and the Central Economic Work Conference scheduled for mid-December will set the stage for 2026 economic planning and may prompt further policy adjustments. These events have the potential to shift sentiment across equities, currencies, and commodities.

Market Sentiment

Market sentiment across the main Asian indices is broadly positive but remains cautious. The Nikkei 225’s strong performance and tech leadership signal confidence in pro-growth reforms and global tech momentum, while the flat micro-trend readings and volatility in Hong Kong and Shanghai suggest investors are hesitant to take aggressive positions. In China, optimism is selective and sector-driven, with persistent challenges in property and electric vehicles weighing on broad-based enthusiasm. Overall, traders are focused on external policy signals and are prepared to react quickly to new developments, resulting in a measured, risk-aware approach.

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