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ASIA STOCKS: Asian Equities Push Higher Largely Erasing Monday's Sell-Off

ASIA STOCKS
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Asian equities are higher today, tracking overnight gains on Wall Street as lower US Treasury yields and mixed economic data drove investor sentiment. Technology stocks in South Korea and Japan outperformed, while robotics-related names in China extended their rally. The yen strengthened further, buoyed by expectations of Bank of Japan policy tightening, which weighed slightly on Japanese equities. Meanwhile, Hong Kong stocks remained cautious ahead of Alibaba's earnings, which could provide a key directional catalyst. Chinese markets struggled amid ongoing trade tensions and economic concerns, despite a short-term boost from the US Postal Service reversing its decision to halt shipments.

  • South Korea's KOSPI is 0.75% higher, led by gains in technology blue chips. Samsung Electronics (+1.13%) and SK hynix (+2.60%) outperformed, benefiting from positive global semiconductor sentiment. However, LG Energy Solution (-1.59%) weighed on the index, reflecting sector-specific weakness in EV-related stocks. Automakers traded mixed, while pharmaceutical stocks gained. Kakao (+3.47%) surged on strong investor interest, while Naver (-1.97%) and POSCO Holdings (-0.83%) declined.
  • China's Robotics-related stocks extended their rally for a second session, fueled by enthusiasm from the Spring Festival Gala. Bethel Automotive (+8.1%), Shenzhen Inovance (+8%), and Jiangsu Guomao Reducer (+10%) led gains. Investors see humanoid robots as a key growth area amid China’s aging population. However, broader sentiment remains fragile due to trade tensions, with equities struggling to sustain gains. The USPS’s decision to reverse its shipping ban offered temporary relief to e-commerce stocks, but concerns over tariffs and economic uncertainty persist. The benchmark CSI 300 is 0.80% higher.
  • The HSI is 0.55% higher, with investors awaiting Alibaba’s earnings on Friday, which could significantly impact sentiment. Alibaba’s recent outperformance compared to US tech peers has drawn attention, with a P/E ratio of 11 versus Nvidia’s 42 and Amazon’s 45. Trade tensions and policy uncertainty continue to cloud the outlook, but a strong earnings report could trigger renewed interest in Hong Kong equities.
  • Japan's Topix (+0.3%) and Nikkei (+0.5%) extended their winning streak to a third day, supported by strong corporate earnings and falling US bond yields. Renesas Electronics (+15%) soared after exceeding earnings expectations, while Nomura Holdings (+8%) and Marubeni (+5%) posted strong gains following positive financial results. Investors remain cautious as the yen strengthened past 152 per USD, raising concerns about export-driven sectors. Expectations for a BOJ rate hike in April-May are rising, supporting the currency but potentially weighing on equities in the near term.
  • Australian equities followed Wall Street higher with the ASX 200 up 1.10%, supported by falling US yields and a weaker USD. Local bond yields declined early Thursday, reflecting global rate expectations. Energy and mining stocks remained in focus, particularly amid Saudi Arabia’s decision to raise crude prices to Asia, which could impact demand dynamics in the region.
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Asian equities are higher today, tracking overnight gains on Wall Street as lower US Treasury yields and mixed economic data drove investor sentiment. Technology stocks in South Korea and Japan outperformed, while robotics-related names in China extended their rally. The yen strengthened further, buoyed by expectations of Bank of Japan policy tightening, which weighed slightly on Japanese equities. Meanwhile, Hong Kong stocks remained cautious ahead of Alibaba's earnings, which could provide a key directional catalyst. Chinese markets struggled amid ongoing trade tensions and economic concerns, despite a short-term boost from the US Postal Service reversing its decision to halt shipments.

  • South Korea's KOSPI is 0.75% higher, led by gains in technology blue chips. Samsung Electronics (+1.13%) and SK hynix (+2.60%) outperformed, benefiting from positive global semiconductor sentiment. However, LG Energy Solution (-1.59%) weighed on the index, reflecting sector-specific weakness in EV-related stocks. Automakers traded mixed, while pharmaceutical stocks gained. Kakao (+3.47%) surged on strong investor interest, while Naver (-1.97%) and POSCO Holdings (-0.83%) declined.
  • China's Robotics-related stocks extended their rally for a second session, fueled by enthusiasm from the Spring Festival Gala. Bethel Automotive (+8.1%), Shenzhen Inovance (+8%), and Jiangsu Guomao Reducer (+10%) led gains. Investors see humanoid robots as a key growth area amid China’s aging population. However, broader sentiment remains fragile due to trade tensions, with equities struggling to sustain gains. The USPS’s decision to reverse its shipping ban offered temporary relief to e-commerce stocks, but concerns over tariffs and economic uncertainty persist. The benchmark CSI 300 is 0.80% higher.
  • The HSI is 0.55% higher, with investors awaiting Alibaba’s earnings on Friday, which could significantly impact sentiment. Alibaba’s recent outperformance compared to US tech peers has drawn attention, with a P/E ratio of 11 versus Nvidia’s 42 and Amazon’s 45. Trade tensions and policy uncertainty continue to cloud the outlook, but a strong earnings report could trigger renewed interest in Hong Kong equities.
  • Japan's Topix (+0.3%) and Nikkei (+0.5%) extended their winning streak to a third day, supported by strong corporate earnings and falling US bond yields. Renesas Electronics (+15%) soared after exceeding earnings expectations, while Nomura Holdings (+8%) and Marubeni (+5%) posted strong gains following positive financial results. Investors remain cautious as the yen strengthened past 152 per USD, raising concerns about export-driven sectors. Expectations for a BOJ rate hike in April-May are rising, supporting the currency but potentially weighing on equities in the near term.
  • Australian equities followed Wall Street higher with the ASX 200 up 1.10%, supported by falling US yields and a weaker USD. Local bond yields declined early Thursday, reflecting global rate expectations. Energy and mining stocks remained in focus, particularly amid Saudi Arabia’s decision to raise crude prices to Asia, which could impact demand dynamics in the region.