TOKYO — Asian shares exhibited a mixed performance on Thursday following declines in U.S. markets, as investors remained wary of recent volatility affecting global finance.
Japan’s benchmark Nikkei 225 managed to recover from earlier losses, trading down by 0.5% to 34,915.47 in afternoon hours. Australia’s S&P/ASX 200 decreased by 0.4%, settling at 7,673.10, while South Korea’s Kospi dropped 0.7% to 2,551.36.
Conversely, Hong Kong’s Hang Seng index experienced a rise of 0.8%, reaching 17,018.62, and the Shanghai Composite gained 0.3%, climbing to 2,877.28.
Taiwan’s Taiex took a hit, decreasing by 1.9% as Taiwan Semiconductor Manufacturing Co. fell by 2.5%, reflecting losses in the global tech sector.
Further losses were also seen among semiconductor equipment manufacturers, with Advantest Corp. dropping 3.2% and Disco Corp. declining by 4%. Meanwhile, Lasertec Corp. saw a significant increase, with its stock rising 22.6% following a reported 28% surge in net profit for the fiscal year ended June 30.
Futures for the S&P 500 and Dow remained relatively stable amid the ongoing market fluctuations.
Despite a slump in U.S. markets on Wednesday, losses were less severe compared to the sharp sell-offs witnessed earlier in the week. European markets, however, recorded strong gains during the same period.
In response to concerns over potential rate hikes, Japanese officials took measures on Wednesday to alleviate fears that were exacerbated by a previous increase in key interest rates, which contributed to substantial selling on Monday. On that day, the Nikkei experienced its most significant percentage loss since 1987.
The Japanese yen maintained a stable position after appreciating against the U.S. dollar, moving to 146.24 yen from 146.72 yen. The euro was priced at $1.0935, up slightly from $1.0927.
Investors are closely monitoring global earnings reports, with notable results coming from prominent companies.
Honda Motor Co. and Sony Corp. both released positive financial outcomes this week. Honda’s shares increased by more than 1%, while Sony’s shares fell 0.7% after initially gaining.
On Wednesday, the S&P 500 slipped by 0.8% after previously rising by 1.7%, ending at 5,199.50. The Dow decreased by 0.6% to 38,763.45, and the Nasdaq composite fell by 1% to 16,195.81.
The yield on the two-year Treasury rate remained steady at 3.99% following a similar rate the previous day.
Nvidia, a significant player on Wall Street, transitioned from a 4.4% morning gain to a 5.1% decline, becoming a major detractor in the index. Concerns continue to grow regarding whether Big Tech stocks like Nvidia have become overvalued amid the frenzy surrounding artificial intelligence.
Apple helped mitigate losses on Wall Street by rising 1.2%, recovering some losses from earlier in the week after reports disclosed reduced ownership stakes by major investors.
Despite underlying concerns regarding the U.S. economy, strong earnings from major corporations continue to support the markets. Analysts predict that growth among S&P 500 companies could reach its highest level since 2021.
Market expectations indicate that the Federal Reserve may consider a rate cut at its next meeting, potentially reducing rates by either a quarter or half a percentage point.
In energy markets, benchmark U.S. crude saw an increase of 17 cents, trading at $75.40 per barrel, while Brent crude rose by 6 cents to $78.39 per barrel.
