Asia report: Most markets rise, Aussie jobs market surges past forecasts

(Sharecast News) - Asia-Pacific equities traded mostly higher on Thursday after US president Donald Trump signed a short-term funding bill ending the longest federal government shutdown in history, supporting risk sentiment across the region. The mood, however, was underscored by what Stephen Innes at SPI Asset Management described as "a fragile equilibrium where even tiny missteps in earnings or macro get punished instantly," noting that, "So much for the reopening euphoria - that optimism has already been harvested, packaged, and sold forward."

Innes said the tentative tone seen in the region was already visible ahead of the open, with "futures into the Asia handover show that hesitation.

"S&P and Nasdaq contracts slipped around 0.2%, hardly a crisis but enough to set the tone."

He added that the broader US session was marked by rotation and fading tech momentum, observing that, "When leaders fade and the index still limps forward, it's not resilience - it's exhaustion disguised as rotation."

Most Asian markets close in the green

Gains in Japan, China, Hong Kong and South Korea offset weaker trade in Australia and New Zealand, where stronger labour data and shifting rate expectations weighed on local shares.

In Japan, the Nikkei 225 rose 0.43% to 51,281.83, lifted by sharp advances in M3, up 23.48%, Furukawa Electric, gaining 12.23%, and Isuzu Motors, which added 11.98%.

The Topix increased 0.67% to 3,381.72.

SoftBank remained under pressure after heavy declines earlier in the week as investors continued to assess its sale of Nvidia shares to finance an AI expansion linked to OpenAI.

Innes said the evolving structure of the AI sector was becoming increasingly tied to financing conditions rather than equity enthusiasm alone, warning that "AI is no longer just about computers, grids, and valuations - it's becoming a funding story, and funding stories always end up dictating market tone."

Chinese markets advanced, with the Shanghai Composite up 0.73% at 4,029.50 and the Shenzhen Component climbing 1.78% to 13,476.52.

Strong gains among mid-cap names helped lift the broader market, led by China Fortune Land Development, which rose 10.18%, Veken Elite, up 10.06%, and Zhejiang XinAn Chemical Industrial Group, which gained 10.04%.

Innes noted that sector rotation globally had favoured areas such as healthcare and materials, remarking that, "capital reacted by slipping out of tech, communications, and consumer discretionary and into healthcare, materials, and financials ... not because these sectors are suddenly sexy - but because they're simpler, cleaner, and less dependent on trillion-dollar narratives."

Hong Kong's Hang Seng Index added 0.56% to 27,073.03, supported by strength in healthcare and resources stocks.

Sino Biopharmaceutical climbed 6.5%, Hansoh Pharmaceutical Group rose 4.85%, and Zijin Mining Group gained 4.23%.

In South Korea, the Kospi advanced 0.49% to 4,170.63, with notable moves in biotech and industrial names.

Aprogen KIC surged 17.48%, Woojin added 13.81% and Orientbio increased 10.68%.

Down under markets weaker as Australian jobs market booms

Australia was the regional laggard, with the S&P/ASX 200 down 0.52% at 8,753.40 after stronger-than-expected jobs data dampened expectations for near-term interest rate cuts.

Net employment rose by 42,200 in October, more than double forecasts, while the unemployment rate fell to 4.3% from 4.5%.

The surprise strength in hiring pushed the Australian dollar higher and bolstered expectations that the Reserve Bank of Australia will hold rates steady in December.

Local equities were dragged lower by steep declines in DroneShield, down 31.4%, Graincorp, off 10.84%, and Xero, which fell 9.03%.

Across the Tasman Sea, New Zealand's S&P/NZX 50 slipped 0.54% to 13,597.87, with Eroad down 5.78%, Infratil falling 5.52% and ANZ Group Holdings easing 4.94%.

Dollar little changed against the yen, weakens on the Aussie

In currencies, the dollar was little changed against the yen at JPY 154.73, fell 0.37% against the Australian dollar to AUD 1.5231, and edged 0.01% higher against the New Zealand dollar to NZD 1.7642.

Innes noted that currency traders were increasingly focused on yen volatility, warning that "USD-JPY at 155 - the neon line where the MoF's blood pressure spikes ... intervention risk is no longer theoretical."

Oil prices firmed, with Brent crude futures last up 0.48% on ICE at $63.01 per barrel, and the NYMEX quote for West Texas Intermediate rising 0.41% to $58.73, despite what Innes called "a horror show" in crude earlier in the week, adding that, "That's how crude trades when macro uncertainty meets rumour volatility."

Reporting by Josh White for Sharecast.com.