Asian stocks mixed ahead of holiday closures: Hang Seng outperforms, Nikkei slips

Asian markets traded mixed on Tuesday.

Tuesday’s session was subdued, with trading hours shortened in several markets, including Australia, Hong Kong, and Singapore, for Christmas Eve.

Most markets will remain closed on Wednesday, except for mainland China and Japan.

In Japan, the Nikkei 225 fell 0.27% to 39,055.35, reversing Monday’s gains.

Weakness in index heavyweights like SoftBank Group and Fast Retailing weighed on the market.

Honda surged over 15% after announcing buyback plans.

Seoul shares opened slightly higher on Tuesday, tracking overnight gains on Wall Street driven by blue-chip stocks.

In early trading, the benchmark Kospi rose 3.73 points, or 0.15%, to 2,445.74.

However, the index gave up early gains and was back in the red at the time of writing.

South Korea’s data released Tuesday revealed a sharp decline in consumer confidence, marking the steepest drop since the onset of the Covid-19 pandemic.

The downturn comes amid political unrest following President Yoon Suk Yeol’s declaration of martial law and subsequent impeachment.

This decline raises concerns about a potential slowdown in private spending, fueling speculation that the Bank of Korea might consider a rate cut in January.

Hong Kong stocks climbed sharply on Tuesday, marking their strongest performance in two weeks, as optimism around potential Chinese policy measures to stimulate economic growth attracted mainland investors.

The Hang Seng Index rose 1.4% to 20,154.80. The Hang Seng Tech Index also advanced 1.5%, contributing to the rally.

China’s CSI was also racing at the bourses on Tuesday. The index was up 0.75% to trade at 3,963.03.

The Australian stock market edged up slightly, extending gains from the previous session.

The S&P/ASX 200 Index added 0.16% to 8,214.60, with mixed performance across sectors.

Meanwhile, minutes from the Reserve Bank of Australia’s December meeting indicated growing confidence that inflation is moving toward its target.

However, policymakers cautioned against declaring victory too soon, citing a recent uptick in consumption and persistent tightness in the labor market.

US stocks eye Santa Claus rally?

After a choppy start, US stocks moved mostly higher on Monday, building on Friday’s strong gains and recovering further from last Wednesday’s sell-off.

The Nasdaq Composite led the way, jumping 192.29 points, or 1.0%, to close at 19,764.89.

The S&P 500 rose 43.22 points, or 0.7%, to finish at 5,974.07, while the Dow Jones Industrial Average posted a more modest gain of 66.69 points, or 0.2%, to end at 42,906.95.

The tech-heavy Nasdaq was bolstered by a positive show from tech giants across the board.

Meta Platforms, Nvidia, and Tesla all posted significant gains on Monday, closing between 2.3% and 3.7% higher.

Other tech giants, including Apple, Amazon.com, and Alphabet, also finished the session in positive territory, contributing to the broader rally in the tech sector.

Outside of tech, pharmaceutical stocks posted strong gains, driving the NYSE Arca Pharmaceutical Index up 2.1%.

Trading activity was lighter than usual ahead of the holiday, with markets set to close early on Christmas Eve.