Asia report: Japanese tech shares lead regional rally
By Josh White
Date: Wednesday 03 Dec 2025
(Sharecast News) - Asia-Pacific equities advanced on Wednesday, buoyed by a strong rally in Japanese technology shares and improved sentiment after US benchmarks climbed overnight.
A rebound in Bitcoin, which crossed $90,000, added to the risk-on tone, although gains were uneven across the region as Chinese and Hong Kong markets lagged.
Patrick Munnelly at TickMill noted that "Asian markets saw limited action on Wednesday, mirroring the range trading witnessed on Wall Street, as investors exercised caution ahead of a wave of US economic reports," adding that futures for the S&P 500 and Nasdaq 100 "rose by 0.2% each after the US benchmark achieved its sixth rise in seven trading days on Tuesday."
Tokyo tech plays lead gains in Japan
Japan led the advance after tech-related stocks tracked gains in their US peers.
The Nikkei 225 rose 1.14% to 49,864.68, with Screen Holdings up 7.92%, Lasertec gaining 7.33% and Ebara Corporation rising 6.66%.
SoftBank Group climbed 6.38%, snapping a three-session losing streak.
Shares of Tokyo Electron, a key supplier of chipmaking equipment for Nvidia's manufacturing partners, added more than 4%, while Renesas Electronics gained over 6% and semiconductor testing firm Advantest advanced nearly 5%.
The broader Topix slipped 0.2% to 3,334.32.
Munnelly said the overnight tone reflected "muted overnight movements in equities" that "reflected a fragile sentiment ahead of this month's interest rate announcements from the Fed and BoJ," highlighting investor sensitivity to policy direction in Tokyo and Washington.
Elsewhere, mainland Chinese markets fell amid signs of slowing services activity.
The Shanghai Composite lost 0.51% to 3,878.00, dragged by declines in Inspur Software and Fujian Dongbai Group, both down 10%.
Maoye Commercial sank 9.95% after its parent, Maoye International Holdings, reduced its stake through a CNY 160.77m (£17.11m) share disposal.
The transaction cut its equity interest from 86.45% to 85% and remained subject to disclosure and shareholder approval under listing rules.
By the close, the Shenzhen Component shed 0.78% to 12,955.25.
Fresh PMI readings showed RatingDog's services purchasing managers' index (PMI) eased from 52.6 to 52.1 and composite PMI weakened from 51.8 to 51.2, signalling moderating growth.
RatingDog founder Yao Yu said the sector was "relatively stable" but noted employment, margins and business expectations remained the "main constraints."
Munnelly observed that "according to a private poll, China's services sector grew at its slowest pace in five months in November, highlighting signs of weakening consumer demand," underscoring the cautious tone in Chinese equities.
Hong Kong shares extended losses, pressured by financials.
The Hang Seng Index fell 1.28% to 25,760.73, with China Construction Bank off 3.92%, China Life Insurance down 3.59% and China Resources Land sliding 3.1%.
Munnelly said that "even as Chinese companies listed in Hong Kong lagged behind," regional investors were reluctant to commit capital ahead of major macro catalysts.
Seoul, Sydney bourses gain after GDP figures
South Korea outperformed as speculative momentum continued in select mid-cap names.
The Kospi gained 1.04% to 4,036.30.
Hanshin Construction surged 30%, while Chunil Express jumped 29.97%, bringing its rally since mid-November to 954% amid expectations linked to the redevelopment of Seoul Express Bus Terminal.
Daesung Industrial climbed 29.93%.
Revised GDP figures showed the economy expanding 1.8% year on year in the third quarter, above the initial 1.7% estimate.
Australia's S&P/ASX 200 edged up 0.18% to 8,595.20 after third-quarter GDP data showed growth of 2.1% year on year, slightly below forecasts but the strongest pace in two years.
Paladin Energy rose 5.21%, Wisetech Global gained 4.51% and Nickel Mines added 4.23%.
Private investment drove expansion, though net trade detracted from growth.
Inflation accelerated to 3.8% in October, with Reserve Bank governor Michele Bullock warning the economy had reached full capacity and that the board would respond to renewed price pressures.
Across the Tasman Sea, New Zealand's S&P/NZX 50 rose 0.59% to 13,582.54, supported by Synlait Milk, SkyCity Entertainment Group and Sanford, which gained 2.88%, 2.42% and 2.1%, respectively.
Dollar weaker on major regional currencies
In currencies, the yen strengthened slightly, with the dollar last down 0.28% to trade at JPY 155.44.
The greenback also eased against its down under counterparts, to AUD 1.5181 and NZD 1.7400.
Oil prices rose, with Brent crude futures last up 1.18% on ICE at $63.19 per barrel, and the NYMEX quote for West Texas Intermediate gaining 1.38% to $59.45.
Munnelly noted that "WTI oil remained relatively stable as traders evaluated the potential for a resolution to the Ukraine conflict following discussions between the US and Russia," but cautioned that "attacks on Moscow's energy infrastructure continued," keeping energy markets on alert.
Reporting by Josh White for Sharecast.com.
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