Stocks across Asia saw gains after a briefing by Chinese officials reinforced the government’s commitment to lifting share prices. Markets in Hong Kong and mainland China opened the day higher, fueling positive sentiment despite a more subdued start elsewhere. The CSI 300 Index surged 1.6%, while the Hang Seng Index rose nearly 1%. The MSCI Asia Pacific Index saw a modest increase of 0.2%.
The market rally followed comments from China’s securities regulator, which echoed previous efforts to support stock prices while providing more specifics. Among the measures discussed were requirements for Chinese insurers to increase their investments in the stock market, a move expected to bolster demand for equities.
Tai Hui, Chief Market Strategist for JPMorgan Asset Management in the Asia Pacific, described the actions as setting the stage for a “more constructive environment” but emphasized that it would take a spark to ignite the market. “A lot of international investors are worried that worsening US-China relations could hurt investments,” he noted.
The briefing, attended by key officials including China Securities Regulatory Commission Chairman Wu Qing, Deputy Finance Minister Liao Min, and central bank official Zou Lan, signaled that boosting the stock market is a broader government priority, not just an issue for regulators.
SoftBank Soars Amid US Policy Shifts
Investors are also processing the early days of US President Donald Trump’s administration, which has sent mixed signals to the market. Trump’s tariff threats against China remain, but his administration has also made gestures toward easing tensions with the world’s second-largest economy.
The US stock market saw a strong rally, with the S&P 500 approaching an all-time high. Much of the recent momentum has been attributed to Trump’s plans to boost spending in artificial intelligence (AI), particularly through a partnership with SoftBank Group, OpenAI, and Oracle Corp. The announcement led to a surge in SoftBank’s shares, which have now risen around 17% since the start of the year.
However, other Asian tech stocks faced headwinds. Shares of South Korea’s SK Hynix Inc. dropped as much as 4.7%, despite the company posting a record quarterly profit that met expectations.
Concerns Over US Market Valuations
In an interview with CNBC, JPMorgan Chase CEO Jamie Dimon expressed concerns about inflated asset prices in the US. “Asset prices are kind of inflated,” Dimon said, noting that the market would need strong outcomes to justify the current valuations.
South Korea’s Economic Struggles
South Korea’s economy continued to show signs of weakness, with GDP growth falling short of expectations in the last quarter. In response, the country plans to issue up to 20 trillion won ($13.9 billion) in special bonds to stabilize its currency, a move last used over two decades ago.
Japan’s Interest Rate Policy and Global Oil Trends
Meanwhile, the Bank of Japan is expected to raise interest rates to their highest level since 2008, signaling progress toward normalization as the Federal Reserve and European Central Bank consider pauses in their own easing cycles.
In the oil market, prices edged lower following an industry report that indicated the first increase in US crude stockpiles since mid-November. Investors are also watching for further global trade signals from President Trump’s administration.
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