Asia-Pacific markets trade mostly higher, shrugging off a week of trade turmoil

Lee Ying Shan

Asia-Pacific markets traded mostly higher Thursday, tracking gains on Wall Street as investors shrug off a week of trade turmoil and a slew of disappointing U.S. tech earnings.

Australia’s S&P/ASX 200 traded 1.23% higher to close at 8,520.7.

Japan’s Nikkei 225 rose 0.61% to close at 39,066.53 while the Topix added 0.25% to close at 2,742.2. South Korea’s Kospi rose 1.1% to end at 2,536.75 and the small-cap Kosdaq advanced 1.28% to end the trading day at 740.32.

Hong Kong’s Hang Seng Index climbed 1.04% in its last hour of trade. Mainland China’s CSI 300 added 1.26% to close at 3,842.83.

India’s benchmark Nifty 50 was down 0.48%, while the BSE Sensex fell 0.43%.

India’s central bank is expected to cut benchmark interest rates in its policy meeting that’s underway, as it strives to stimulate a faltering economy. The decision will be out on Friday.

Overnight in the U.S., the three major indexes posted gains for the second day in a row, even as notable technology stocks Alphabet and AMD posted steep losses following earnings.

The blue-chip Dow Jones Industrial Average climbed 317.24 points, or 0.71%, to 44,873.28. The index’s gains were led by a sharp advance in Nvidia. The S&P 500 rose 0.39%, ending at 6,061.48. Meanwhile, the Nasdaq Composite added 0.19%, closing at 19,692.33.

Nvidia jumped more than 5% after server maker Super Micro Computer announced full production availability of its artificial intelligence data center with Nvidia’s Blackwell platform. Super Micro shares rose around 8% following the announcement.

— CNBC’s Sean Conlon and Sarah Min contributed to this report.

Nissan CEO proposes to terminate merger talks, Asahi reports

Japanese automaker Nissan’s CEO Makoto Uchida told Honda chief Toshihiro Mibe to terminate their merger talks, Japan’s Asahi Shimbun newspaper reported.

Both companies are expected to hold board meetings to discuss the termination, the report said.

Honda had reportedly opposed Nissan’s delay in coming up with a restructuring plan, while Honda had proposed making Nissan a subsidiary — an idea that the latter was opposed to.

Shares of Nissan rose 2.09% while Honda lost 4.1%.

— Lee Ying Shan

Bank of Japan board member says ‘necessary’ to lift rates to around 1%

Bank of Japan board member Naoki Tamura on Thursday said that it was “necessary” for the BOJ to lift short-term interest rates to “at least around 1%” by the second half of fiscal year 2025.

This is to “contain the upside risks to prices and achieve the price stability target in a sustainable and stable manner,” Tamura said.

By the second half of fiscal 2025 when annual wage hikes are confirmed, the country’s economy is likely to reach a state where the bank’s 2% price stability target has been achieved, Tamura added.

— Lee Ying Shan

India likely to cut benchmark rates for the first time in nearly five years as economy slows, inflation eases

India’s central bank will likely cut benchmark interest rates in its policy meeting that’s underway, as easing inflation offers it room to stimulate a faltering economy, though the rupee hovers at record lows.

The Reserve Bank of India is poised to trim the repo rate by 25 basis points to 6.25% as it concludes its policy meeting on Friday, setting off “a shallow rate cut cycle,” said Taimur Baig, chief economist at DBS Bank.

Indian bonds have rallied in recent weeks with the 10-year benchmark yield falling by 16.5 basis points in about three weeks to 6.664% as of Wednesday close, according to LSEG data, as traders ramp up wagers for an interest rate cut at the February meeting.

—Anniek Bao

Stocks close in positive territory

The three major indexes finished higher on Wednesday.

The Dow Jones Industrial Average jumped 317.24 points, or 0.71%, to finish at 44,873.28, while the S&P 500 rose 0.39% to close at 6,061.48. The Nasdaq Composite also gained 0.19% to settle at 19,692.33.

— Sean Conlon

10-year Treasury yield falls 10 basis points

The benchmark 10-year Treasury yield dropped 10 basis points to trade at 4.412% on Wednesday afternoon.

The decline follows the Treasury Department saying earlier in the day that auction sizes are expected to be unchanged “for at least the next several quarters” while it issues “incremental” increases to Treasury Inflation-Protected Securities sizes.

Source : cnbc