Asian markets mostly advanced on Thursday, though gains in Chinese stocks were limited after a lackluster briefing on the country’s property market.
Technology stocks saw a positive boost, with investors eagerly anticipating TSMC’s (TW:2330) (NYSE) upcoming earnings report, expected later in the day.
The region took its cue from Wall Street, where a recovery in tech shares and upbeat earnings fueled a strong session on Wednesday. However, U.S. stock index futures edged lower during Asian trading, as the focus shifted to upcoming earnings and economic data.
Chinese Stocks Struggle After Disappointing Property Briefing
China’s main indexes, the Shanghai Shenzhen CSI 300 and the Shanghai Composite, barely held on to early gains, trading around 0.1% higher by midday. Meanwhile, Hong Kong’s Hang Seng Index performed slightly better, rising by 0.8%.
China’s housing ministry announced further support measures for the property sector, including expanding a list of developers eligible for government funding. However, the lack of detailed information from the briefing left investors unimpressed.
This announcement follows a series of high level briefings from Chinese officials, which began in late September, aimed at bolstering the economy. Despite optimism for China’s recovery, recent briefings have underwhelmed markets due to vague plans and missing specifics.
Looking ahead, China’s third quarter GDP data, set for release on Friday, could provide further insights into the country’s economic outlook.
TSMC Earnings Awaited as AI Demand Stays in Focus
Investors are closely watching TSMC’s third quarter earnings report, which is due to be released later today. As the world’s largest contract chipmaker, TSMC’s performance is often seen as a key indicator for the broader chip and technology sectors. Shares of TSMC in Taipei, however, dipped by 1%.
Analysts, according to a Reuters poll, expect the company to report a net profit of T$300.1 billion ($9.33 billion), with continued demand for AI driving much of the growth.
TSMC’s report comes shortly after ASML, a major supplier of chipmaking equipment, issued a weaker sales outlook for 2025, casting some uncertainty over the broader industry.
ASX 200 Hits Record High, While Japanese Stocks Slip
Most other Asian markets remained in positive territory. Australia’s ASX 200 hit a new record, gaining 1% to close at 8,384.50 points, as hopes for further Chinese stimulus bolstered sentiment. Strong labor market data in Australia also lifted optimism, though it raised expectations for continued monetary tightening by the Reserve Bank of Australia.
Australian mining giant BHP Group Ltd (ASX) saw modest gains after reporting stronger than expected iron ore production in the September quarter.
South Korea’s KOSPI was flat, with investors cautious ahead of TSMC’s earnings release.
On the other hand, Japan’s Nikkei 225 fell by 0.6%, following the release of data showing a larger than expected trade deficit for September. The slowdown in export growth was driven by weakness in China, Japan’s top trading partner. Meanwhile, Japan’s TOPIX index remained unchanged as the market awaited consumer inflation data due Friday.
India’s Nifty 50 futures signaled a slightly weaker opening, with the index facing resistance near the 25,000 point mark. Several major Indian companies, including Infosys Ltd, Axis Bank Ltd, and Wipro Ltd, are set to release their earnings reports on Thursday.
