Highlights
- FTSE 100 expected to open 73 points higher
- Hang Seng falls about 1% as technology stocks weaken
- Mainland China edges higher, with STAR 50 outperforming
- Nikkei trades near flat while Kospi holds modest gains
- Brent crude softens to around $91-$92 a barrel
Bright start predicted
After a strong session on Wall Street, buoyed by a revival of interest in the tech sector, the FTSE 100 looks set to open 73 points higher.
The spark? Well, it was CoreWeave, which jumped 25% after its quarterly print comprehensively beat expectations.
The company is what's called a neocloud, a provider of processing capacity to the AI sector, meaning it is a bellwether for demand.
Asian markets
Asian markets were mixed on Thursday as renewed concerns around Nvidia and the artificial intelligence trade weighed on technology shares, offsetting a positive lead from Wall Street.
Hong Kong was among the weakest major markets, with the Hang Seng Index down about 1% to around 24,000, while mainland Chinese shares moved higher and Japan and South Korea traded more cautiously.
The moves followed a strong US session in which the S&P 500 rose 1.3% and the Nasdaq gained 1.6%, but sentiment shifted after Nvidia shares fell sharply in after-hours trading.
Hong Kong tech weighs on market
The Hang Seng slipped below 24,100 during morning trade, extending Wednesday’s decline as investors reduced exposure to technology and other growth stocks.
The weakness came as fresh uncertainty surrounding Nvidia unsettled the broader Asian semiconductor supply chain.
Taiwanese equities also came under pressure after strong gains earlier in the week, with chip names particularly sensitive to the Nvidia-led volatility.
China bucks regional weakness
Mainland Chinese markets were firmer.
The Shanghai Composite was up about 0.2%-0.4%, while the technology-heavy STAR 50 gained more than 2% by midday as semiconductor and electronics stocks attracted buying.
The divergence suggests domestic Chinese technology stocks are finding support even as sentiment towards global AI names becomes more volatile.
Japan and Korea mixed
Japan’s Nikkei moved around the flat line after opening higher, with weakness in electronics stocks offset by gains elsewhere in the market.
The broader Topix performed better, while the yen remained weak near ¥159-¥160 per US dollar.
South Korea’s Kospi was modestly higher around the 5,400 level, supported by gains in Samsung Electronics and SK Hynix, although smaller stocks were weaker.
Oil and rates remain in focus
Oil prices softened, with Brent crude around US$91-US$92 a barrel, while investors continue to monitor expectations of another US Federal Reserve rate hike in December.
For Australian investors, the key regional signals are the renewed volatility in Asian technology stocks, continued resilience in mainland China and whether weaker oil prices provide further relief to the inflation outlook.
