Asia report: Most markets manage gains as tech shares rebound

(Sharecast News) - Asia-Pacific equity markets traded mixed on Tuesday as a rebound in Wall Street's technology shares helped lift sentiment across the region but failed to generate broad-based gains. Alphabet's rise overnight, driven by renewed optimism over its upgraded AI model Gemini 3, led a wider rally in AI-linked names including Broadcom and Micron Technology.

The rebound followed comments from the New York Federal Reserve late last week that kept alive the prospect of a December rate cut, improving appetite for technology stocks.

Patrick Munnelly at TickMill noted that "tech stocks gave global markets a boost for the third consecutive day, fuelled by growing expectations of a Federal Reserve rate cut in December," with money markets now seeing "nearly a 90% chance that the Federal Reserve will cut interest rates at its December meeting."

Most markets edge higher as tech names rise

Japan's Nikkei 225 edged up 0.07% to 48,659.52, supported by strong gains in Eisai, Sumitomo Electric Industries and Toppan Printing, which rose 7.4%, 6.39% and 4.64%, respectively.

The broader Topix slipped 0.21% to 3,290.89 as gains in a handful of heavyweight names failed to offset weaker moves elsewhere.

Munnelly said that in Asia, "stocks climbed, with tech giants like TSMC leading the way," reflecting the improved risk tone driven by US rate expectations.

Chinese markets advanced, with the Shanghai Composite up 0.87% at 3,870.02 and the Shenzhen Component gaining 1.53% to 12,777.31.

AI and tech-related shares were among the strongest performers, including Qingdao Topscomm Communication, Shanghai DaZhong Public Utilities Group and Shanghai Koal Software, which all rose by around 10%.

Hong Kong's Hang Seng Index climbed 0.69% to 25,894.55, bolstered by Baidu's 4.56% rise after JPMorgan recently upgraded the stock to 'overweight' and lifted its US price target.

The bank said Baidu's AI and cloud businesses were becoming its primary growth drivers, supported by strong domestic demand for computing power, government backing for AI infrastructure and the success of its in-house Kunlun chips.

Munnelly said Hong Kong and mainland Chinese stocks advanced as "presidents Trump and Xi Jinping resumed discussions for the first time since agreeing on a tariff truce last month," which helped stabilise regional sentiment.

Alibaba Health Information Technology and Xiaomi also advanced, with Xiaomi rising 4.35% after founder Lei Jun purchased HKD 100m (£9.79m) of shares, lifting his stake to 23.26% and helping stabilise sentiment following a steep pullback this year.

South Korea's Kospi added 0.3% to 3,857.78 as retail and transportation names Kolon Mobility Group, Chunil Express and SBW surged between 28% and 30%.

Consumer confidence in the country hit an eight-year high in November, helped by stronger exports and reduced trade uncertainty following Seoul's agreement with Washington on a tariff framework and major investment package.

Investors were also looking ahead to Thursday's central bank meeting, where policymakers would weigh financial stability risks against stronger-than-expected third-quarter GDP growth of 1.2%.

DroneShield jumps in Sydney, Wellington in the red

Australia's S&P/ASX 200 gained 0.14% to 8,537.00.

Defence technology firm DroneShield jumped 14.61% after securing a $5.2m follow-on contract with a European military customer, while Ramsay Health Care climbed 12.7% as it signalled progress in its core domestic hospitals business and said it would decide by February whether to divest its troubled European unit.

IperionX rose 10.66% after disclosing that JPMorgan had ceased to be a substantial holder in the company.

Across the Tasman Sea, New Zealand's S&P/NZX 50 fell 0.14% to 13,480.43, pressured by an 8.29% drop in Pacific Edge after the diagnostics company reported a wider first-half loss and lower operating revenue.

Restaurant Brands New Zealand declined 2.58% after Finaccess Restauración increased its stake to 97.667% through a cash takeover offer, while seafood giant Sanford slipped 2.4%.

Currencies mixed as oil prices ease

In currencies, the dollar was last down 0.41% on the yen at JPY 156.25, while it remained little changed against the Aussie at AUD 1.5478, and edged higher to NZD 1.7831 on the Kiwi.

Oil prices eased, with Brent crude futures last down 0.28% on ICE at $63.19 per barrel, and the NYMEX quote for West Texas Intermediate 0.2% lower at $58.72.

Munnelly said oil prices were declining as "progress in Ukraine peace negotiations raised the possibility of increased supply, offsetting the broader risk-on sentiment seen across global markets."

He also noted that the delayed US data calendar, following the end of the government shutdown, meant policymakers "may lack sufficient data to guide their decisions" at next month's meeting, although remarks from Williams and Daly have "further bolstered market expectations of a rate cut next month."

Reporting by Josh White for Sharecast.com.