Asia-Pacific Markets Rebound Despite Trade Volatility and Mixed US Earnings

Asia-Pacific markets traded mostly higher on Thursday, tracking Wall Street gains as investors brushed off a week marked by trade turmoil and disappointing US tech earnings, CNBC reports.

Key Regional Market Performances

• Australia: The S&P/ASX 200 rose by 1.23% to close at 8,520.7, reflecting broad gains across sectors.
• Japan: The Nikkei 225 added 0.61%, closing at 39,066.53, while the Topix gained 0.25% to settle at 2,742.2.
• South Korea: The Kospi index advanced 1.1% to end at 2,536.75, and the small-cap Kosdaq climbed 1.28% to 740.32.
• China: The mainland CSI 300 rose by 1.26%, closing at 3,842.83, and Hong Kong’s Hang Seng Index increased 1.04% in late trade.
• India: The Nifty 50 and the BSE Sensex posted declines of 0.48% and 0.43%, respectively.

Overnight in the US, major indices posted their second consecutive day of gains. The Dow Jones Industrial Average surged 317.24 points (0.71%) to 44,873.28, driven by Nvidia’s sharp rise. The S&P 500 and Nasdaq Composite also saw modest gains, rising by 0.39% and 0.19%, respectively.

Despite the overall positive market sentiment, key technology stocks faced setbacks. Alphabet and AMD posted losses following earnings reports, with investors remaining cautious about the tech sector’s near-term outlook.

In India, the Reserve Bank of India (RBI) is expected to cut its benchmark interest rate by 25 basis points to 6.25% on Friday. The move would be the first rate reduction in nearly five years, aimed at stimulating an economy grappling with a slowdown and declining inflation.

Meanwhile, in Japan, Bank of Japan board member Naoki Tamura indicated the need to raise short-term interest rates to “at least around 1%” by the second half of 2025 to manage price risks and stabilize inflation sustainably.

In corporate news, Japanese automakers Nissan and Honda reportedly decided to terminate merger talks. According to Asahi Shimbun, Honda opposed delays in Nissan’s restructuring plan and had proposed making Nissan a subsidiary—a move Nissan resisted. Shares of Nissan rose 2.09%, while Honda shares fell by 4.1%.