Asian Stocks Mixed as CoreWeave Lifts Chipmakers, U.S. Inflation Weighs on Tech
Asian shares moved in different directions as gains in semiconductor stocks in Japan, South Korea and Taiwan followed strong CoreWeave results. Hotter-than-expected U.S. inflation data renewed concern about Federal Reserve rate increases, while technology shares in Hong Kong and China fell.
Asian stocks were mixed on Wednesday as CoreWeave’s stronger results lifted semiconductor shares in Japan, South Korea and Taiwan, while hotter U.S. inflation weighed on rate-sensitive technology stocks.
The MSCI Asia Pacific Index rose as much as 0.8%, extending a recovery that had produced its strongest two-day advance in more than three months. Hong Kong and mainland Chinese markets fell.
Chipmakers lead regional gains
South Korea’s KOSPI gained 1.8%, while Japan’s Nikkei 225 rose 1.2% and the TOPIX advanced 0.8%. SK Hynix and LG Innotek each climbed 3.6%, and Samsung Electronics added 2.4%.
In Japan, TDK gained 3.43%, Kioxia advanced 2.99% and Murata Manufacturing rose 2.65%. Taiwan Semiconductor Manufacturing added 2.63%, while Largan Precision gained 2.96%.
The Hang Seng fell 0.9%. The CSI 300 and Shanghai Composite each slipped 0.2%, with NetEase and MiniMax down 2.6% apiece and Meituan off 2%.
CoreWeave lifts AI sentiment
CoreWeave shares rose around 2% in late U.S. trading after the AI computing provider reported quarterly results above analyst estimates and raised its annual forecast. The results pointed to continued demand for computing capacity despite concerns about constraints across the data-center industry.
U.S. stock futures also advanced: Nasdaq 100 futures climbed 1.2% and S&P 500 futures rose 0.6%, recovering losses in the Nasdaq 100 during regular trading.
Inflation revives rate concerns
October U.S. consumer prices rose 0.4% month on month, while core inflation, which excludes food and energy, increased 0.3%. Both readings exceeded expectations for a third consecutive month.
Markets were pricing in a quarter-point Federal Reserve rate increase in December, with some possibility of a larger move, and roughly three quarter-point increases by June. Dallas Fed President Lorie Logan said faster increases could be needed over the winter. Governor Christopher Waller said a 50-basis-point increase in December may be warranted, while Chicago Fed President Austan Goolsbee called the inflation report “disturbing.”
Hong Kong and Chinese technology shares also faced concerns about AI valuations and competition, as well as uncertainty over U.S.-China technology cooperation ahead of the November 18-19 Trump-Xi meeting. Meituan’s decline was compounded by a broker downgrade.
SoftBank Group fell as much as 11% in Tokyo after reporting a ¥1.12 trillion ($7.1 billion) fiscal second-quarter loss. The company included a $3.7 billion writedown on its U.S. data-center projects, amid falling AI valuations.
Alibaba said its chip division, T-Head, had confidentially filed for a Hong Kong IPO. Alibaba shares nevertheless fell 1.3%.
