Asian stocks today: Markets trade mixed as investors assess AI outlook; Nikkei gains over 600 points, HSI down 0.1%
Asian markets were mixed on Thursday as investors tried to assess the global AI-driven rally, US interest rate moves, and the continuing government shutdown in Washington.Japan’s Nikkei gained 1.29% or 614 points trading at 48,349, while HSI dipped 9 points or 0.03% to reach 26,820 at 9:30 AM IST. In India, NSE benchmark Nifty traded flat, adding 35 points or 0.14 to trade at 25,081. Some relief came from the Middle East, where Israel and Hamas agreed on the first phase of a ceasefire in Gaza. The news helped calm fears over oil supply, sending prices lower, while gold eased slightly after hitting a record above $4,000 an ounce on Wednesday. Tech companies have soared this year, with huge investments in AI driving stock markets higher. But worries are rising that the profits may not match the money being spent, raising concerns about a bubble in the sector. “AI is clearly a bubble,” said Neil Wilson of Saxo Markets. However, despite these concerns, Wall Street bounced back after Oracle’s report, with the S&P 500 and Nasdaq closing at new records on Wednesday. In Asia, optimism boosted Tokyo, which rose over 1 percent after business-friendly Sanae Takaichi was elected leader of Japan’s ruling party, fuelling hopes of further stimulus. Shanghai rose as markets reopened after a week-long holiday, while Sydney, Taipei, and Manila also gained. Hong Kong, Singapore, Wellington, and Jakarta fell. The US government shutdown continued to weigh on sentiment. Democrats blocked a sixth Republican attempt at a stopgap funding measure, insisting that any deal must include an extension of healthcare subsidies for 24 million people. On the geopolitical front, Donald Trump unveiled a 20-point peace plan as part of the Gaza ceasefire. Under the deal, Hamas would release all hostages, and Israeli troops would pull back to a pre-agreed line. Oil prices, which had been elevated over supply worries, eased. Gold, which surged to nearly $4,060 an ounce on Wednesday due to the crisis, also retreated. In company news, Hong Kong-listed Hang Seng Bank surged over 26% after reports that HSBC plans to take it private, buying remaining shares in a deal valuing the lender at US$37 billion. Meanwhile, HSBC shares fell more than 6%.
