Asian Stocks Edge Higher as Hong Kong Tech Surge Offsets Softbank’s Nvidia Sale

Asian markets mostly advanced on Wednesday, led by a sharp rebound in Hong Kong stocks, as optimism from Wall Street and strength in local technology names boosted sentiment. However, Japan’s Nikkei 225 saw limited gains, weighed down by a steep drop in Softbank Group after it confirmed the sale of its entire Nvidia stake.

Regional investors took cues from Wall Street’s overnight gains, where cyclical and economically sensitive sectors rallied on hopes that the U.S. government shutdown may soon end. The S&P 500 futures edged up 0.2% as attention turned to a key congressional vote to reopen the government.

Hong Kong’s Hang Seng Index climbed 1% in morning trading, reaching its highest level in over a month. Tech and health-tech leaders fueled the rally, with JD Health International surging 5.8% and Alibaba Health Information Technology rising 3.6%. Xiaomi Corp gained 3.8% after data showed its YU7 electric vehicle outsold Tesla’s Model Y in China during October, marking a major milestone for the company’s EV segment. Xiaomi reported total EV sales of 48,654 units, with 33,662 being YU7s, surpassing Tesla’s 26,006 sales in the same period.

Meanwhile, China’s mainland indexes were muted, with the Shanghai Shenzhen CSI 300 and Shanghai Composite trading flat amid reports that Beijing planned to restrict U.S. military access to rare earth materials.

In Japan, the Nikkei 225 was flat as a 10% plunge in Softbank offset gains from Sony Corp, which rose 3% on strong quarterly earnings and an upgraded annual forecast. Softbank disclosed it sold 31.2 million Nvidia shares worth $5.8 billion in October, overshadowing its better-than-expected Q2 results driven by AI investments.

Elsewhere, South Korea’s KOSPI added 0.8%, Australia’s ASX 200 rose 0.2%, and Singapore’s Straits Times Index gained 0.3%. Futures for India’s Nifty 50 dipped 0.2% following three straight sessions of gains.