Asia stocks edge higher as chipmakers rebound; China trade beats forecasts

Investing.com — Asian stocks edged higher on Wednesday as semiconductor shares recovered, although elevated oil prices and caution ahead of U.S. inflation data limited gains.

Stronger-than-expected Chinese trade figures offered some support, while subdued consumer inflation highlighted the uneven nature of the country’s recovery.

The MSCI Asia-Pacific index excluding Japan rose 0.5%. South Korea’s KOSPI gained 1.6%, Japan’s Nikkei 225 rose 0.6%, and Hong Kong’s Hang Seng advanced 0.3%. China’s CSI 300 slipped 0.2%, while the Shanghai Composite added 0.1%.

Wall Street provided a mixed backdrop. U.S. bank shares declined overnight following mixed quarterly results from Citigroup and other lenders, while the technology selloff earlier had sent the Philadelphia Semiconductor Index down 2.7% to its lowest level since mid-September.

In Asian trade, Nasdaq 100 futures rose 0.3% and S&P 500 futures gained 0.1%.

Oil remained a concern for investors after Houthi missile and drone attacks on Saudi Arabia heightened uncertainty over energy supplies. Brent crude rose 1.2% to around $106.86 a barrel, while U.S. crude gained 0.8% to $94.96.

Chipmakers rebound after Tuesday’s AI selloff

South Korean chipmakers led the recovery, with Samsung Electronics rising 2.8% and SK Hynix gaining 2% after plunging in the previous session amid growing concerns over Chinese competition. Japan’s Kioxia fell 1.8%, while Taiwan Semiconductor Manufacturing gained 1.4%, Foxconn rose 2.6% and Largan slipped 3.9%.

The previous session’s selloff reflected fears that Chinese memory-chip maker ChangXin Memory Technologies is narrowing the technology gap with established manufacturers.

Investors are now looking to U.S. corporate earnings for evidence that technology companies can justify their AI investments. The reporting season began with results from major banks including JPMorgan Chase, Goldman Sachs, Citigroup and Wells Fargo, while Bank of America and Morgan Stanley are due to report later on Wednesday.

New York Fed President John Williams said the central bank may need one more rate increase this year to contain inflation but sees no need for further hikes in 2027.

Markets were pricing in a 22% chance of an increase in October, while the dollar index eased to 102.17 after reaching an 18-month high in the previous session. The euro was little changed at $1.1202.

China trade strengthens as consumer inflation remains subdued

China’s exports surged 36.3% year-on-year in September, beating the 25.5% forecast, while imports rose 31% versus expectations of 24.5%, highlighting resilient external demand despite continued weakness in domestic spending.

China’s CPI rose to 0.9% year-on-year in September from 0.8%, missing the 1% forecast, while monthly CPI gained 0.2% and core inflation held at 1%. PPI inflation accelerated to 5% from 3.8%, beating the 4.5% forecast as higher energy and commodity costs lifted factory-gate prices, while weak core inflation signalled subdued consumer demand.

Singapore’s economy expanded 5.4% year-on-year in the third quarter, slowing from 6.2% in the previous quarter but beating the 5.1% consensus estimate. Growth remained firm, although the moderation adds to evidence that regional momentum is easing.

India’s Nifty 50 rose 1.6% on Tuesday after Finance Minister Nirmala Sitharaman said she was willing to hear discussion about the transaction tax on share trading, as the government seeks to attract capital inflows. Nifty 50 Futures climbed 2.1%.

Elsewhere, Australia’s S&P/ASX 200 fell 0.7%, while New Zealand’s NZX 50 was up little changed. Singapore’s Straits Times gained 0.1%.

Attention now turns to Wednesday’s U.S. consumer price index report. Headline inflation is expected to accelerate to 3.6% year-on-year, with a 0.6% monthly increase following August’s 0.4% rise, while core CPI is forecast to climb 0.2% month-on-month.