Asia stocks rise in holiday-thinned trade on tech boost
Investing.com– Most Asian stocks rose on Tuesday, supported by gains in technology stocks as they tracked their U.S. peers, although trading volumes were slim before the Christmas break.
Regional markets took positive cues from Wall Street, which closed higher on Monday as technology stocks recouped some of their steep losses from last week. U.S. stock index futures were flat in Asian trade.
Wall Street will have a shortened trading session on Tuesday, as will most Asian markets.
Asian markets were nursing losses in recent sessions after the Federal Reserve flagged a slower pace of interest rate cuts in 2025- a scenario that bodes poorly for risk-driven assets.
Japan shares muted; Honda rallies, Nissan flat amid merged talk
Japan’s Nikkei 225 index fell slightly on Tuesday, as did the TOPIX.
Focus was squarely on automakers Honda (NYSE:HMC) Motor Co Ltd (TYO:7267) and Nissan Motor Co., Ltd. (TYO:7201), after they confirmed on Monday that they were in talks over a potential merger, which will be completed in 2026.
Honda’s shares rallied as much as 15%, also benefiting from the company announcing a 1.1 trillion yen ($7 billion) buyback.
Nissan (OTC:NSANY), on the other hand, traded flat after recouping a bulk of losses clocked earlier in the session. The stock had risen sharply on Monday after news of the merger first broke.
Mitsubishi Motors (OTC:MMTOF), in which Nissan holds a 34% stake- will also consider joining the merger. Its shares rose 3.6%.
The Honda-Nissan deal will create the world’s third-largest automaker by sales once completed. But analysts noted that a 2026 date for the deal was too cautious, especially given that the automakers were grappling with an extended decline in sales.
Chinese stocks upbeat on stimulus hopes
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose around 0.7% each, while gains in tech stocks saw Hong Kong’s Hang Seng index rally 1%.
Markets were holding out for more clarity on Beijing’s plans for stimulus measures in the coming year. Recent reports suggested that the country will ramp up fiscal spending to support economic growth.
Optimism over more stimulus helped Chinese stocks weather a recent downturn in Asian markets. Chinese purchasing managers index data is now due in the coming days and is set to offer more cues on Asia’s largest economy.
Broader Asian stocks were mostly higher in shortened holiday trading. Australia’s ASX 200 added 0.1% as the minutes of the Reserve Bank’s December meeting showed policymakers signaling an eventual decline in interest rates.
South Korea’s KOSPI fell 0.2%, as gains in tech stocks were offset by persistent concerns over political turmoil in the country.
Singapore’s Straits Times Index index rose 0.5%, while futures for India’s Nifty 50 index pointed to a weak open, as the index nursed steep losses over the past few weeks.