Asian stock markets were mixed on Wednesday, with most major indices edging lower after strong gains earlier in the week, while South Korean shares climbed to fresh record highs, buoyed by renewed optimism around artificial intelligence.
Geopolitical tensions added to the cautious mood in Asia after China said it had imposed immediate controls on exports to Japan of items that could have military use.
China’s Ministry of Commerce said the restrictions prohibit the export of all dual-use goods to Japan for defence purposes, intensifying a dispute between Asia’s two largest economies linked to remarks made last year by Japanese Prime Minister Sanae Takaichi on Taiwan.
KOSPI hits fresh record high, other markets subdued
Wall Street closed higher overnight with gains in technology stocks after Nvidia announced details on its next generation of AI processors.
In South Korea, the benchmark KOSPI jumped over 1% to a new record peak of 4,611.72 points, extending its recent rally, building on strong year-end gains.
Semiconductor heavyweights Samsung Electronics (KS:005930) and SK Hynix (KS:000660) advanced between 3% and 5%, as investors eyed improving earnings prospects across the chip sector.
Elsewhere in Asia, markets struggled to maintain momentum after recent rallies.
Japan’s TOPIX index fell 0.5% from record highs, while the Nikkei 225 slipped also slipped 0.5% from near-record levels, with investors locking in profits after a strong start to the year.
Hong Kong equities also fell, with the Hang Seng index retreating 1% after sharp gains in recent sessions driven by technology stocks.
In Mainland China, the blue chip Shanghai Shenzhen CSI 300 traded flat, while the Shanghai Composite index gained 0.3%.
Australia CPI slowed in Nov
Australian shares were modestly lower as investors digested November consumer price data, which showed inflation easing but remaining above the central bank’s comfort zone.
The data reinforced expectations that the Reserve Bank of Australia is likely to keep interest rates on hold in the near term, with policymakers seeking clearer evidence that underlying inflation pressures are cooling before considering any easing.
Australia’s S&P/ASX 200 index gained 0.4%.
Elsewhere, Singapore’s Straits Times Index traded largely flat, while India’s Nifty 50 ticked down 0.1%.
Source: Investing