BANGKOK (AP) Asian shares exhibited mixed results on Thursday as China implemented additional measures aimed at bolstering its struggling stock markets. The initiative was aimed at increasing investor confidence and ensuring that stock prices experienced an uptick.
Officials in Beijing revealed that pension funds and mutual funds are now mandated to enhance their stock purchases to help stabilize market values. Furthermore, they plan to encourage listed companies to undertake more stock buybacks and elevate dividends to boost shareholder returns, according to Wu Qing, the head of the China Securities Regulatory Commission.
As a result of these measures, share prices in Shanghai rose by 1% to reach 3,246.51 by midday. In contrast, Hong Kong’s Hang Seng index saw a marginal increase of less than 0.1%, reaching 19,790.14.
In Japan, the Nikkei 225 index climbed 0.6%, rising to 39,891.10, supported by gains in technology stocks, notably SoftBank Group Corp. This company is heavily investing in Stargate, a joint venture that the White House recently announced will focus on constructing data centers and developing the necessary electricity infrastructure for advancing artificial intelligence initiatives. The investment partnership, comprised of Oracle, OpenAI, and SoftBank, is expected to inject as much as $500 billion. Consequently, SoftBank’s shares surged by 3.7% during Thursday's trading in Tokyo, building on an 11% increase from the previous day.
Other Asian markets, however, didn't fare as well. The S&P/ASX 200 in Australia slipped by 0.6% to close at 8,383.50, while South Korea's Kospi experienced a 0.8% decline, finishing at 2,526.98. Taiwan’s Taiex index managed a 1% increase, whereas India's Sensex saw a slight decrease of 0.2%.
On Wednesday, optimism in Wall Street was fueled by significant upswings in major tech stocks like Netflix and Oracle, as their profits continued to rise alongside increasing enthusiasm surrounding the revenue-generating potential of artificial intelligence. The S&P 500 rose by 0.6%, landing at 6,086.37, nearing its all-time closing high established early last month. The Dow Jones Industrial Average increased by 0.3% to 44,156.73, while the Nasdaq Composite jumped by 1.3% to 20,009.34.
These gains occurred despite the fact that most U.S. stocks faced downward pressure from rising Treasury yields. For instance, the smaller Russell 2000 index fell by 0.6%, and roughly two-thirds of the stocks in the S&P 500 recorded declines. However, substantial gains from influential large-cap stocks more than offset these losses.
Netflix was particularly notable, soaring by 9.7% after reporting that live events, such as football games and a fight between Mike Tyson and Jake Paul, contributed to the addition of nearly 19 million subscribers during the last quarter. The streaming service’s strong performance added to an increasing list of companies that have surpassed analysts’ profit expectations for the end of 2024, which in turn supported their stock prices amid the downward pressure exerted by escalating Treasury yields.
The rise in yields has been attributed mainly to persistent inflation concerns and the growing U.S. government debt, which previously impacted stock performance and momentarily interrupted a record-breaking market run into 2024. Travelers Insurance climbed by 3.2% after reporting earnings that exceeded analysts’ estimates, driven by investment gains and increased net written premiums despite facing losses from Hurricane Milton and other disasters.
A significant portion of the market upswing was also related to companies involved in artificial intelligence. Shares of Oracle rose by 6.8%, while Nvidia, a major supplier of chips used for AI, gained 4.4%.
In the cryptocurrency sector, Bitcoin was trading just above $102,000 according to CoinDesk, following record levels above $109,000 set earlier in the week. This surge has been fueled by expectations of a more favorable regulatory environment under President Donald Trump. However, the market has not been without its controversies, particularly following the launch of meme coins by Trump and his wife, which critics deemed to be opportunistic cash grabs.
On the commodities front, U.S. benchmark crude oil prices dipped by 21 cents to $75.23 per barrel, while Brent crude, the international standard, decreased by 27 cents to $76.40 per barrel. The dollar strengthened slightly against the Japanese yen, rising to 156.52, while the euro remained relatively stable at $1.0410.
