Asian stocks rose in thin pre-holiday trading, driven by a rally in tech firms after some of the world’s largest technology companies boosted US benchmarks on Monday.
Shares in Mainland China and Hong Kong were among the best performers, while those in Japan were mixed. Taiwan Semiconductor Manufacturing Co. touched a new record high, while Honda Motor Co. jumped after announcing a share buyback.
US equity futures steadied in Asia after a gauge of the “Magnificent Seven” technology megacaps climbed on Wall Street.
“The rally in 2024 is very concentrated in technology, and that is expected to be sustained in 2025,” Ecaterina Bigos, chief investment officer for Asia ex-Japan core investments at Axa Investment Managers Asia Ltd., said on Bloomberg Television.
“What we will be looking for in 2025 is the broadening of earnings and a rally that is not as concentrated.”
MSCI’s Asian equity benchmark is still headed for its first quarterly loss since September 2023, losing 6.8% over the period, even as the S&P 500 has risen 3.7%.
Sentiment has soured in Asia in recent months due to concerns over higher global tariffs threatened by US President-elect Donald Trump, a stronger dollar and China’s lackluster economic recovery.
