Asia report: Kospi leads risers on US auto tariff news
By Josh White
Date: Tuesday 02 Dec 2025
(Sharecast News) - Asia-Pacific equity markets mostly rose on Tuesday, supported by gains in South Korean auto stocks after Washington confirmed reduced US tariffs, even as weakness in Chinese shares and softer commodity prices tempered broader enthusiasm.
The gains followed a mixed Wall Street session overnight, where all three major US benchmarks ended a five-day winning streak.
Patrick Munnelly at TickMill noted that "Asian markets bounced back on Tuesday following a sharp selloff on Monday, where cryptocurrencies led the decline in global risk assets."
He added that "nearly $1bn in leveraged cryptocurrency positions were liquidated on Monday amid another sharp price drop, fuelling further momentum in a broad market selloff."
Tokyo benchmark holds steady amid AI speculation
Japan's benchmarks were steady - the Nikkei 225 was virtually unchanged, up 0.0003% at 49,303.45, while the Topix added 0.08% to 3,341.06.
Industrial robot maker Fanuc Corporation climbed 6.51% after announcing a partnership with Nvidia to integrate artificial intelligence into its products.
Nippon Electric Glass and NGK Insulators surged 9.87% and 7.2%, respectively.
In contrast, SoftBank dropped more than 5%, extending its losing streak amid concerns over stretched AI valuations.
SoftBank founder Masayoshi Son told the FII Priority Asia forum that he "was crying to sell Nvidia shares" to fund investments in artificial intelligence, adding: "I wish to have unlimited money ... I just had more need for money to invest into OpenAI, into our opportunities."
Investor focus also remained fixed on the Japanese rates outlook.
Munnelly said "speculation around a potential interest rate hike by the Bank of Japan caused a rise in yields," and noted that "the Japanese yen, which surged on Monday following hawkish remarks from BoJ governor Kazuo Ueda, edged slightly lower against the dollar on Tuesday."
Improving household sentiment offered a brighter domestic counterpoint, with Japan's November consumer confidence index rising to 37.5 from 35.8, reflecting stronger views on income growth, employment and durable goods purchases.
Mainland shares lag while Seoul jumps
Chinese stocks lagged - the Shanghai Composite fell 0.42% to 3,897.71, pressured by steep declines in China Merchants Energy Shipping, Cosco Shipping Energy Transportation and Shinghwa Advanced Material Group, which slid 9.94%, 8.46% and 7% respectively.
The Shenzhen Component dropped 0.68% to 13,056.70.
Hong Kong equities fared better, with the Hang Seng Index up 0.24% at 26,095.05.
Galaxy Entertainment Group, Hengan International Group and Budweiser Brewing Company rose 2.81%, 2.69% and 2.35%, respectively.
South Korea was a standout performer.
The Kospi rallied 1.9% to 3,994.93, buoyed by a surge in transport and auto shares after US commerce secretary Howard Lutnick confirmed that tariffs on South Korean vehicles would be lowered to 15% retroactively from 1 November.
He added that the United States would remove tariffs on airplane parts and "un-stack" Korea's reciprocal rate to align with Japan and the EU.
Hyundai Motor gained 4.52% and Kia Corporation climbed 4.19%, while Hyundai Autoever jumped 18.65%.
Bus operators Dongyang Express and Chunil Express surged 29.96% and 29.81%, with Chunil hitting the upper limit for an eighth consecutive session on redevelopment speculation around Seoul's Gangnam Express Bus Terminal.
Munnelly said "tech-heavy markets like South Korea and Taiwan performed particularly well," and flagged shifting global attention toward central banks, adding that "the week ahead is expected to centre on central bank decisions, with the Federal Reserve meeting scheduled for 9-10 December and the BoJ set to announce its rate decision on 19 December."
Inflation remained manageable, with headline consumer prices rising 2.4% in November, slightly above expectations but steady enough to reinforce projections that the Bank of Korea will keep its 2.5% policy rate unchanged.
Sydney, Wellington bourses manage gains
Australian shares extended gains, with the S&P/ASX 200 up 0.17% at 8,579.70.
Mercury NZ, Stanmore Coal and Yancoal Australia rose 5.13%, 3.93% and 3.35%, respectively.
Across the Tasman Sea, New Zealand's S&P/NZX 50 edged 0.4% higher to 13,502.77, supported by advances in Pacific Edge, Vital Healthcare Property Trust and Spark New Zealand, which rose 3.29%, 2.85% and 1.75%, respectively.
Dollar mixed as oil prices soften
In currency markets, the dollar strengthened against the yen, rising 0.3% to last trade at JPY 155.92.
It slipped 0.1% against the Aussie to AUD 1.5267, and gained 0.21% on the Kiwi to NZD 1.7492.
Oil prices softened, with Brent crude futures easing 0.32% on ICE to $62.97 per barrel, while the NYMEX quote for West Texas Intermediate fell 0.2% to $59.20.
Reporting by Josh White for Sharecast.com.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN