Asian Shares Extend Rally Amid Strong U.S. Data and Tech Optimism; Indian Markets Display Mixed Trends

Asian stock markets continued their climb on Wednesday, buoyed by some positive news from the U.S. and a strong push from the tech sector. But India didn’t follow the crowd quite as enthusiastically, showing a bit more caution thanks to local market forces and sector-specific moves.

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U.S. Data and Tech Buzz Power Global Gains

Investors across Asia received a boost from new U.S. economic data suggesting that inflation may be cooling off. That’s raised hopes that the Federal Reserve could cut interest rates soon, which is great news for tech stocks, which rallied hard.

Japan’s Nikkei 225 ticked up 0.5%, South Korea’s KOSPI jumped 1.8% on significant gains in prominent tech names, and Australia’s ASX 200 rose a modest 0.2%.

Tech enthusiasm soared even higher after South Korea’s SK Hynix announced it had started mass production of its most advanced high-bandwidth memory chips, which are key to AI development. That gave a lift to Japan’s Advantest Corp. and Tokyo Electron, and even Taiwan’s TSMC gained 1%.

China Joins the Rally Thanks to Stimulus Support

Chinese stocks also moved higher. Both the Shanghai Composite and the CSI 300 climbed 0.6%, continuing a winning streak that’s now seven sessions long. What’s behind the momentum? Beijing’s fresh round of stimulus measures – think lower bank reserve requirements and mortgage rates. In Hong Kong, the Hang Seng Index rose 1.5%, driven by strong performances from major tech companies.

India Treads Carefully Amid Global Enthusiasm

India’s stock markets, however, were more reserved. The NSE Nifty50 inched up by just 0.13% to 24,857.80, and the BSE Sensex barely moved, rising 0.055% to 81,596.74 in early trading. However, that didn’t last; both indices experienced some fluctuations later in the day, with the Sensex dropping over 100 points and the Nifty slipping below 24,800.

The mixed action was driven by sector-specific news. ITC’s shares fell 4% on rumours of a stake sale, dragging the indices down. On the other hand, LIC jumped 8%, providing the market with some much-needed lift. Interestingly, MidCap and SmallCap stocks performed better, suggesting that investors are interested in broader opportunities beyond the large players.

Earnings Season in Full Swing

Another key influence on Indian markets? Corporate earnings. On May 28, a total of 428 companies were set to report their Q4 results. Among them are IRCTC, Deepak Nitrate, SAIL, Cummins, Bata India, Nuvama Wealth, 3M, Natco Pharma, and Finolex Cables.

One standout was Triveni Engineering, whose stock soared 10% after a strong Q4 FY25 performance.

Looking Ahead: Cautious Optimism for India

While Asian markets are riding high on global tailwinds, India’s market is taking a more cautious approach. Local earnings reports, sector developments, and broader economic factors are keeping things balanced.

Analysts warn that short-term volatility is likely, urging investors to stay alert, especially with numerous earnings reports and sector shifts in play.

Bottom line? While Asia is riding a wave of global optimism, India’s markets are choosing to navigate that wave carefully, striking a balance between big-picture momentum and on-the-ground realities.