Asia-Pacific markets fell on Tuesday, reversing earlier gains and breaking ranks with Wall Street, which rose on revived optimism around artificial intelligence and growing hopes that the US government shutdown will soon end.
On Monday, Nvidia shares jumped 5.8% to lead gains in the S&P 500. Other tech stocks rose, including Google parent Alphabet, which advanced 4%, and Microsoft, which added 1.9% to snap an eight-day losing streak.
Japan’s benchmark Nikkei 225 index fell by 0.42%, while the Topix index lost 0.14%. AI-related stocks on the Nikkei 225 pared gains, with conglomerate SoftBank adding 0.45% and chipmaker Renesas Electron up 0.65%.
Orix shares rose 0.49% after the Japanese financial conglomerate on Tuesday announced a partnership with Qatar’s sovereign wealth fund, the Qatar Investment Authority, to launch a $2.5 billion private equity fund.
The fund will invest in Japanese firms, “primarily targeting business succession, privatization of listed firms and spin-offs,” worth at least 30 billion yen (about $200 million), Orix said in a press release. Orix and QIA will contribute 60% and 40%, respectively.
Shares in Japanese tech giant Sony Group rose more than 6% after it reported better second-quarter earnings and announced a share buyback of up to $648 million. The company’s operating profit increased by 10% compared to the same period last year, while revenues increased by 5%, driven by gains in the Imaging & Sensing Solutions and Music segments.
South Korea’s Kospi index gained 0.38% in choppy trading after leading a region-wide rally on Monday. Index giants Samsung Electronics and SK Hynix pared earlier gains to rise 1.79% and 0.17%, respectively.
Australia’s S&P/ASX 200 reversed course and traded down 0.19%.
Hong Kong’s Hang Seng fell 0.2%, while the mainland’s CSI 300 fell 0.67%.
Shares in Chinese electric vehicle maker Xpeng rose as much as 15% to hit their highest level since late 2022, after it launched robotaxis and humanoid robots with its own AI chips at its event last Wednesday. The company’s shares jumped more than 16% on Monday.
India’s Nifty 50 fell 0.35% and the Sensex lost 0.48%.
