Asian markets were mostly higher, supported by a boost in Chinese stocks amid signs of Beijing’s pivot toward easier credit policies and additional stimulus measures for its struggling economy.
Nvidia shares declined 0.6% in after-hours trading, extending a 2.6% loss earlier in the day after China announced an investigation into the company for alleged violations of anti-monopoly laws.
China’s Shanghai Composite Index surged 1.6% to 3,456.12, while Hong Kong’s Hang Seng gained 1% to reach 20,618.18. This followed news from a late Monday meeting where Chinese leaders endorsed a “moderately loose” monetary policy for the world’s second-largest economy, marking a significant departure from a decade-long “prudent” approach. A key planning meeting scheduled for Wednesday is anticipated to unveil additional stimulus measures.
Japan’s Nikkei 225 rose 0.5% to 39,335.74, and South Korea’s Kospi rebounded 2.3%, recovering some losses as political tensions eased. South Korean prosecutors are seeking to formally arrest the former defense minister, accused of collaborating with President Yoon Suk Yeol in imposing martial law last week. Both are under investigation for rebellion and related charges.
Meanwhile, Taiwan’s Taiex fell 0.8% amid reports of China preparing military drills in response to recent visits by Taiwan’s President Lai Ching-te to Hawaii and Guam. Taiwan’s defense ministry noted the presence of Chinese naval and coast guard vessels in the Taiwan Strait and the western Pacific and reported restricted airspace along China’s southeast coast through Wednesday. The developments come amid heightened tensions after U.S. president-elect Donald Trump indicated he would not guarantee defending Taiwan in the event of a Chinese invasion.
Elsewhere in the region, Australia’s S&P/ASX 200 slipped 0.4% to 8,389.30, while markets in Thailand were closed for a public holiday.
In the U.S., markets declined as traders awaited key inflation data critical to the Federal Reserve’s decision on potential interest rate cuts. The S&P 500 fell 0.4%, retreating from record highs, while the Dow Jones Industrial Average dropped 0.3%. The Nasdaq 100 lost 0.7%.
Oil prices rose following China’s signal of bold economic stimulus measures for 2025. Brent crude climbed from $71.22 per barrel to $71.92.
