On Thursday, Asia-Pacific markets showed a predominantly positive trend following significant movements in the U.S. stock market. This increase in share prices was influenced by the recent signing of a funding bill by U.S. President Donald Trump, which brought an end to the longest federal government shutdown in American history. As a result, various indices across the region experienced gains, reflecting a generally optimistic investor sentiment.
Performance of Major Indices
In Japan, the Nikkei 225 index rose by 0.43%, closing at 51,281.83, while the Topix index saw a more substantial increase of 0.67%, finishing at 3,381.72. Notably, the Topix reached a record intraday high of 3,389.12 earlier in the trading session, indicating strong market momentum. However, SoftBank Group's shares faced a downturn, falling 3.38% for the second consecutive day after the company disclosed that it had sold its entire $5.8 billion stake in Nvidia to finance its investments in OpenAI.
South Korean Market Activity
South Korea's Kospi index experienced a gain of 0.49%, closing at 4,170.63 amidst fluctuating trading conditions. The Kosdaq, which focuses on smaller companies, performed even better with a 1.31% increase to settle at 918.37. These movements reflect the broader market's resilience and adaptability in the face of changing economic conditions.
Australian Economic Indicators
In Australia, the S&P/ASX 200 index reduced its losses to 0.52%, closing at 8,753.4. A significant factor contributing to this outcome was the release of government jobs data, which showed that the unemployment rate for October fell to 4.3%, better than the 4.4% expected by economists surveyed by Reuters. This improvement in employment figures has led to decreased expectations for an interest rate cut, which in turn strengthened the Australian dollar, bringing it to 0.6556 against the U.S. dollar.
Market Reactions in Hong Kong and India
The Hong Kong market also saw gains, with the Hang Seng Index rising by 0.56%. Meanwhile, the mainland's CSI 300 index advanced by 1.21%. In India, the Nifty 50 index registered a modest increase of 0.47%. These developments across various Asian markets reflect a broader trend of recovery and growth in the region, buoyed by favorable economic indicators and a positive outlook from U.S. markets.
U.S. Market Overview
In the United States, the Dow Jones Industrial Average reached a significant milestone, closing above 48,000 for the first time, with an increase of 326.86 points, or 0.68%, to finish at 48,254.82. This surge was part of a broader market rotation, although the S&P 500 remained relatively stable, ending up just 0.06% at 6,850.92, while the Nasdaq Composite saw a slight decline of 0.26% to 23,406.46.
Conclusion
The overall performance of Asian markets on Thursday signals a positive response to U.S. economic developments, particularly the resolution of the government shutdown. As markets adjust to these changes, investors will be closely monitoring economic indicators and corporate earnings reports to gauge future trends. This situation highlights the interconnectedness of global markets and the influence of U.S. economic policy on international trading environments.