Markets at a glance
Asian stock markets were mixed on Wednesday as a wave of strength in semiconductor and AI-related names in Japan, South Korea and Taiwan contrasted with weakness in Hong Kong and Chinese technology shares. The MSCI Asia Pacific Index advanced as much as 0.8%, extending a two-day recovery that the index recorded as its strongest in more than three months.
Technology and futures
Technology names led much of the upward move. Nasdaq 100 futures climbed 1.2% and S&P 500 futures added 0.6%, recouping losses seen earlier in the Nasdaq 100 during regular U.S. trading. The regional strength was concentrated in chipmakers and components suppliers, while investors balanced AI-driven optimism against renewed concerns about the U.S. inflation trajectory.
Regional market moves
Major Asian benchmarks diverged. South Korea's KOSPI rose 1.8%, Japan's Nikkei 225 gained 1.2% and the TOPIX increased 0.8%. In contrast, Hong Kong's Hang Seng fell 0.9%, and mainland Chinese indices eased with the CSI 300 and Shanghai Composite both slipping 0.2%.
Notable stock moves
- South Korean chipmakers led the rally: SK Hynix climbed 3.6%, LG Innotek rose 3.6% and Samsung Electronics added 2.4%.
- Japanese suppliers and memory-related names also advanced: TDK gained 3.43%, Kioxia rose 2.99% and Murata Manufacturing was up 2.65%.
- Taiwan's key hardware names participated in the rally: Taiwan Semiconductor Manufacturing increased 2.63% and Largan Precision added 2.96%.
- By contrast, Chinese tech shares suffered losses led by NetEase, down 2.6%, MiniMax, which fell 2.6%, and Meituan, which declined 2%.
- Chinese chipmaker CXMT slipped 0.2% while SMIC edged up 0.1%.
AI earnings lift sentiment
Shares of CoreWeave rose around 2% in late U.S. trading after the AI-computing provider reported quarterly results that exceeded analyst estimates and lifted its full-year outlook. That update reinforced the view that demand for computing capacity tied to AI workloads remains strong despite concerns about capacity constraints in some parts of the data-centre industry. Separately, anticipation around the planned listing of Anthropic grew, with the company targeting a fully diluted valuation of $1.4 trillion, which fed into the broader AI optimism among investors.
Inflation concerns re-emerge
That optimism was tempered by October U.S. inflation data that surprised to the upside. Headline consumer prices rose 0.4% month-on-month, while core CPI increased 0.3%, marking the third consecutive month that core readings exceeded expectations. The hotter-than-expected numbers revived concerns that the Federal Reserve will raise rates further.
Markets priced in a quarter-point Fed increase in December, with some probability of a larger move, and roughly three quarter-point hikes by June. Fed officials signaled a range of views: Dallas Fed President Lorie Logan warned that faster increases could be needed over the winter, Governor Christopher Waller said a 50-basis-point move in December may be warranted, and Chicago Fed President Austan Goolsbee called the latest inflation report disturbing. U.S. cash Treasury trading was closed on Wednesday for a public holiday.
China and Hong Kong tech under pressure
The decline in Chinese and Hong Kong technology stocks reflected a combination of higher U.S. rate expectations and longer-running concerns over AI valuations and competitive dynamics. Uncertainty about the near-term prospects for U.S.-China technology cooperation ahead of the November 18-19 meeting between the U.S. and Chinese leaders was cited as an additional weight on sentiment. Meituan's losses were amplified by a broker downgrade, according to market commentary.
SoftBank Group shares plunged as much as 11% in Tokyo after the company reported a fiscal second-quarter loss of A51.12 trillion, which included a $3.7 billion writedown on U.S. data-centre projects amid falling AI valuations. Alibaba also made corporate moves in the semiconductor and AI space: its chip division, T-Head, confidentially filed for a Hong Kong IPO and submitted a Form A1 application on September 11 after securing exchange clearance for the proposed spin-off. Despite that filing, Alibaba's shares fell 1.3%.
Other regional benchmarks
Outside the large East Asian markets, Australia’s S&P/ASX 200 rose 0.1% and Singapore’s STI gained 0.7%. In India, the Nifty added 0.2% while the Sensex increased 0.1%.
Summary: A pronounced split emerged across Asian markets as renewed optimism for AI-driven demand pushed semiconductor stocks higher in Japan, South Korea and Taiwan, while Chinese and Hong Kong technology equities retreated following stronger-than-expected U.S. inflation data and ongoing geopolitical and valuation concerns.