Most Asia-Pacific markets fell on Wednesday as investors assessed fresh trade data from Japan and digested the formation of the country’s new political leadership.
The declines came despite a record-setting session on Wall Street, where the Dow Jones Industrial Average was boosted by strong corporate earnings.
The negative sentiment was most pronounced in Japan, where the Nikkei 225 was down 0.48%, leading losses across the region. In contrast, South Korea’s Kospi index managed to buck the trend, rising 0.3%.
Japanese exports rebound, but SoftBank tumbles
Data released on Wednesday showed that Japanese exports in September snapped a four-month losing streak, climbing 4.2% year-on-year.
The rebound was driven by a robust increase in shipments to other parts of Asia, which helped to offset a drop in exports to the United States. However, the figure still missed economists’ expectations for a 4.6% rise.
The market was also weighing the composition of the new government under Prime Minister Sanae Takaichi, who was sworn in on Tuesday.
A key drag on the Nikkei was a more than 5% plunge in shares of the tech-investment giant SoftBank, a sharp reversal after the stock had gained 8.5% on Monday.
The Indian stock market will remain closed on Wednesday, October 22, for the observance of Diwali Balipratipada, giving traders an extended break following the special Diwali Muhurat trading session.
Both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) are shut for the holiday. Regular trading is scheduled to resume on Thursday, October 23.
A tale of two chemicals: LG Chem soars, Pop Mart surges
While the broader market was in retreat, a powerful story of activist pressure was unfolding in South Korea.
Shares of the chemicals company LG Chem soared as much as 10% after the investment firm Palliser Capital urged the company to revamp its board and initiate a share buyback program, according to a Reuters report.
In Hong Kong, another individual stock was also defying the gloom. Shares of the Labubu doll maker Pop Mart surged about 6 percent after the company posted strong third-quarter results, a rare bright spot in a market where the Hang Seng index slipped 0.83%.
A record on Wall Street, a cautious Asia
The cautious mood in Asia is a stark contrast to the optimism seen overnight in the United States.
The Dow Jones Industrial Average set a new closing record, boosted by strong earnings reports from corporate giants like Coca-Cola and 3M.
The S&P 500 also closed just above the flatline, but the tech-heavy Nasdaq Composite lagged, falling 0.16%. For now, it is a rally that Asia is choosing not to join.
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