Asian markets saw a mix of movements on Thursday as China implemented measures to bolster its struggling stock markets and instill confidence in investors. Authorities in Beijing announced that pension funds and mutual funds will be mandated to increase stock purchases to boost market value. Additionally, listed companies are being encouraged to conduct stock buybacks and boost dividends to enhance shareholder returns, according to Wu Qing, the head of the China Securities Regulatory Commission.
In Shanghai, share prices rose by 1% to 3,246.51 by midday, while Hong Kong’s Hang Seng saw a marginal increase to 19,790.14. Tokyo’s Nikkei 225 index climbed 0.6% to 39,891.10, driven by gains in technology shares, particularly those of SoftBank Group Corp. This surge was fueled by SoftBank’s significant investments in Stargate, a joint venture focused on developing data centers and power generation for advancing artificial intelligence, as announced by the White House.
The collaboration between Oracle, OpenAI, and SoftBank is set to invest up to $500 billion. Following an 11% increase the previous day, SoftBank’s shares surged by 3.7% in Tokyo trading on Thursday. In other parts of Asia, Australia’s S&P/ASX 200 fell by 0.6% to 8,383.50, and South Korea’s Kospi dropped by 0.8% to 2,526.98. Conversely, Taiwan’s Taiex rose by 1%, while India’s Sensex declined by 0.2%.
On Wall Street, the gains on Wednesday were driven by prominent technology stocks such as Netflix and Oracle, amidst growing excitement over the profitability of artificial intelligence. The S&P 500 climbed by 0.6% to 6,086.37, nearing its previous record high. The Dow Jones Industrial Average and the Nasdaq composite also saw increases of 0.3% and 1.3%, respectively.
Despite concerns about rising Treasury yields affecting U.S. stocks, the market was buoyed by strong performances from key companies. Netflix, for instance, surged by 9.7% after reporting substantial subscriber growth in the latest quarter. The trend of companies exceeding profit expectations has aided in supporting stock prices against the backdrop of increasing Treasury yields, which have dampened investor enthusiasm for stocks.
Companies in the AI sector, such as Oracle and Nvidia, experienced notable gains, contributing to the market’s positive momentum. In the cryptocurrency realm, bitcoin hovered slightly above $102,000, following a record high above $109,000 earlier in the week.
Overall, the markets displayed a mix of optimism and caution, influenced by a range of factors including government policies, corporate performances, and global economic trends.
In the world of cryptocurrency, a new trend has emerged as wife launches meme coins, stirring up controversy among critics who view it as a questionable cash grab. Meanwhile, in the financial markets, U.S. benchmark crude oil experienced a slight dip of 21 cents to reach $75.23 per barrel, while Brent crude, the international standard, also saw a decrease of 27 cents to settle at $76.40 per barrel. On the currency front, the dollar made gains against the Japanese yen, rising to 156.52 from 156.43 yen, while the euro held steady at $1.0410. This update comes courtesy of AP Business writers Stan Choe and Matt Ott.
