Asian markets traded with a mixed and cautious tone on Wednesday, as investors weighed hopes for an end to the US government shutdown against a major strategic shift from Japanese tech giant SoftBank, whose shares plunged after it announced the sale of its entire stake in chipmaker Nvidia.
While some regional indices edged higher, the spotlight was firmly on a dramatic sell-off in SoftBank and a notable rotation out of technology stocks on Wall Street, creating an uncertain backdrop for the day’s trading.
SoftBank shares nosedive 10% after cashing out of Nvidia
The biggest corporate news of the day came from SoftBank, which revealed in its earnings report that it sold its entire stake of 32.1 million shares in US chipmaker Nvidia for $5.83 billion in October.
The Japanese investment powerhouse also trimmed its position in T-Mobile, raising $9.17 billion as it looks to monetize assets and capitalize on its “all in” bet on ChatGPT-maker OpenAI.
Investors reacted swiftly and negatively to the news, sending SoftBank Group shares tumbling as much as 10% in Wednesday’s session.
A mixed and muted performance across the region
The cautious sentiment was reflected across Asia’s major bourses.
In Japan, the benchmark Nikkei 225 fell 0.26%, weighed down by the heavy losses in index giant SoftBank, though the broader Topix index managed to add 0.35%.
Elsewhere, the picture was largely flat. South Korea’s Kospi hovered near the flatline, while in China, the mainland CSI 300 was also flat and Hong Kong’s Hang Seng Index posted a modest gain of 0.25%.
Australia’s S&P/ASX 200 rose 0.13%.
Wall Street rotation and shutdown hopes drive sentiment
The backdrop for Asian trading was a divided session in the US overnight.
While the Dow Jones Industrial Average rallied 1.18% to a fresh closing record, the tech-heavy Nasdaq Composite fell 0.25%.
This divergence signaled a clear rotation in the market, as investors moved money out of high-flying technology stocks and into lower-valuation blue-chip names, including healthcare giants.
The broader market sentiment, however, remains supported by growing optimism that the record-setting U.S. government shutdown could be nearing an end.
Indian markets open with a strong rally
In a stark contrast to the cautious mood elsewhere in Asia, Indian markets opened with a strong rally for the third consecutive session.
The BSE Sensex jumped 454 points (0.54%) at the open to 84,326.09, while the NSE Nifty 50 climbed 135 points (0.53%) to trade above the 25,830 level, with sentiment buoyed by the positive global cues from the Dow’s record performance.
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