A powerful divergence is splitting global markets on Thursday, as most of Asia defiantly charts its own course, shrugging off a tech-led selloff on Wall Street that had sent key benchmarks tumbling.
While a mood of caution prevails in Tokyo, strong gains in Seoul and Sydney paint a picture of a region breaking ranks and finding its own momentum.
The split was clear from the opening bells. South Korea’s Kospi index jumped 1%, while Australia’s S&P/ASX 200 benchmark surged 0.81%, even hitting a fresh intra-day record high of 8,983.
Mainland China’s CSI 300 also moved higher, adding 0.48%. This resilience comes after a bruising session in the US, where the S&P 500 slipped for a fourth consecutive day and the tech-heavy Nasdaq lost 0.67%.
The Japanese outlier: a market under pressure
The one notable exception to the region’s bullish mood was Japan. The Nikkei 225 fell 0.57%, with heavyweights like SoftBank Group weighing on the index.
The pressure wasn’t just in equities; a dramatic move in the bond market saw yields on Japan’s 20-year government bonds surge to 2.646%, a staggering 26-year high, signaling a significant shift in investor sentiment in the world’s fourth-largest economy.
This weakness in Tokyo, however, was offset by pockets of remarkable strength, with Mitsui Mining and Smelting soaring 11.7% and chip-testing giant Advantest rising over 3%, showcasing a market of intense contrasts.
A pause for breath on Dalal Street
After a spectacular five-day rally that saw the benchmark Nifty 50 decisively conquer the 25,000 level, the Indian stock market is poised to take a well-deserved breather.
A flat opening is expected for the Sensex and Nifty 50 on Thursday, with trends on the Gift Nifty indicating a muted start to the session.
On Wednesday, the market had extended its winning streak, with the Sensex rising 0.26% to close at 81,857.84 and the Nifty 50 settling 0.28% higher at 25,050.55.
Now, with mixed global cues and a tech hangover from Wall Street, the market is pausing as investors look to a new catalyst.
That catalyst may arrive later today, as the region awaits India’s HSBC Composite flash purchasing managers’ index (PMI) reading for August.
This report will provide a crucial early snapshot of the private sector’s health in one of the world’s fastest-growing economies, and could determine whether Dalal Street resumes its powerful ascent or consolidates its recent gains.
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