Asian markets were mostly higher on Wednesday as investors returned to technology and semiconductor stocks following improved sentiment on Wall Street, with South Korea leading the regional rebound after Tuesday’s sharp sell-off.
Japan and Taiwan also advanced, while mainland China and Hong Kong lagged, and the Australian market finished almost unchanged after moving through a relatively narrow range.
ASX finishes almost flat
The S&P/ASX 200 closed just 3 points higher at 8,820, effectively flat for the session, after opening at 8,817.
The benchmark traded as high as 8,842 and fell to an intraday low of 8,796 before recovering into the close.
The muted finish followed Tuesday’s 0.4% decline as investors balanced stronger global risk sentiment against continued caution around resources, energy prices and the outlook for interest rates.
Kospi surges as chip stocks rebound
South Korea was the standout market, with the Kospi jumping around 4% to about 5,800 during afternoon trading as investors returned aggressively to semiconductor stocks.
The rally was strong enough to trigger a buy-side “sidecar”, a mechanism that temporarily pauses programme buying when futures move sharply.
Samsung Electronics rose around 7%, while SK Hynix gained about 8%, reversing part of the heavy losses suffered during the previous session.
The rebound also followed Tuesday’s volatile debut for artificial intelligence infrastructure company Elice, which had intensified concerns about valuations and debt-funded spending across the sector.
Nikkei rises as exporters and technology recover
Japan’s Nikkei 225 was up around 2% near 65,200 during afternoon trading, recovering from Tuesday’s decline.
Technology and semiconductor stocks led the rebound, while sentiment was also helped by Japanese trade figures showing exports increased 17% year on year in September.
The stronger export performance was driven partly by automobiles and technology products, although higher energy costs continued to weigh on Japan’s trade balance.
Taiwan rallies, Hong Kong and China lag
Taiwan’s Taiex climbed around 1% to 47,000 in afternoon trading as semiconductor shares recovered alongside their Korean and Japanese counterparts.
Hong Kong moved in the opposite direction, with the Hang Seng down around 0.3% near 23,800 before the midday break after giving up an early gain.
Mainland Chinese equities were also slightly weaker, with the Shanghai Composite around 0.4% lower near 3,720.
The divergence left North Asian technology-heavy markets outperforming Chinese equities during the session.
India opens strongly
Indian shares joined the regional rebound, with the Nifty 50 up around 1% near 23,100 during morning trading and the Sensex gaining about 1% to around 74,500.
Technology stocks were among the stronger sectors as Indian investors responded to improved global sentiment following recent market weakness.
Wall Street provides firmer lead
Wall Street finished mostly higher overnight as strong corporate earnings and easing oil prices helped offset continuing concerns about the cost of artificial intelligence investment.
The Dow Jones Industrial Average jumped 1% to 52,496, while the S&P 500 gained around 0.3% to 7,713.
The Nasdaq Composite was virtually unchanged at 26,425, reflecting continued caution around large technology stocks despite the broader market rebound.
Oil remains elevated
Brent crude remained close to US$110 a barrel, while West Texas Intermediate traded near US$99 as Middle East supply risks continued to support prices.
Gold was around US$4,110 an ounce, while Bitcoin remained above US$82,000 as risk assets stabilised following several volatile sessions.
