EconoTicker

Japanese semiconductor names saw sharp diverging moves on Wednesday following major analyst calls. Ibiden Co. (TYO:4062) — a key Nvidia supplier — fell 5.2% after being downgraded to Equal Weight by Morgan Stanley, pressuring sentiment around firms tied to Nvidia’s supply chain.

Meanwhile, Murata Manufacturing (TYO:6981) surged 2.8% after receiving an upgrade to Overweight, signaling renewed confidence in demand for its chip components.

Broader tech sentiment improved despite lingering concerns over Nvidia’s valuation and circular financing risks, helped by Alphabet (Google) hitting a series of record highs as reports indicated the company is preparing its own AI processors, further shifting the competitive landscape.

Market impact: Mixed for Japanese tech; analyst-driven moves create volatility, while Alphabet’s strength offers sector-wide support.

Japan’s SoftBank Group (TYO:9984) jumped 6.3% on Wednesday, rebounding sharply from a 2.5-month low after losing roughly 10% over the previous two sessions. The stock had been under pressure due to mounting concerns about its exposure to OpenAI, which itself is facing intensifying competition from Google in the artificial intelligence space.

The rebound suggests bargain hunting and stabilizing sentiment after a steep decline in recent days.

Market impact: Mildly bullish for Japanese tech; SoftBank’s recovery signals improving risk appetite following sector-wide volatility.

Asian equities saw a strong rebound on Wednesday, led by a sharp recovery in technology shares. Japan’s Nikkei 225 and South Korea’s KOSPI were the region’s top performers, each rising around 2%. Japan’s TOPIX also climbed 1.9%, supported by broad buying in industrial and energy stocks tied to the artificial intelligence (AI) supply chain.

The rally was fueled by growing optimism over a potential Federal Reserve rate cut in December, alongside sustained enthusiasm for AI-related growth drivers across the region.

Market impact: Bullish for Asian equities; tech-led gains underscore renewed risk appetite boosted by easing-rate expectations and AI demand.

Tech shares broadly recovered on Wednesday, but NVIDIA (NVDA) lagged the sector, sliding to a two-month low of $177.82, down 2.59%, after reports indicated that Google (GOOGL) is developing its own artificial intelligence chips. The move raised concerns that Google’s in-house hardware could compete directly with NVIDIA’s flagship AI accelerators, pressuring sentiment around the stock.

Market impact: Mildly negative for NVDA; competitive pressures in AI chip development could weigh on future demand expectations.

Global markets were broadly higher on Wednesday, with the S&P 500 extending its rally for a third straight day.

MSCI’s broadest index of shares outside Japan climbed 1%, supported by firmer expectations that the Federal Reserve will cut rates next month. In Japan, the Nikkei 225 surged 2% on optimism over strong corporate earnings.

However, gains were more muted in Greater China. Hong Kong’s Hang Seng Index rose 0.5%, buoyed partly by Alibaba’s better-than-expected earnings. Still, Alibaba’s shares slipped 1.1% as investors were disappointed by its weaker Q4 guidance and its decision to scale back spending on its instant-commerce unit — a move that helped competitor Meituan jump 6%.

Market impact: Mixed; global equities strengthened on Fed-cut optimism, but China remains a regional laggard amid cautious corporate outlooks.

U.S. equities surged on Tuesday, led by a powerful rebound in tech stocks. The Dow Jones rose 0.44%, the S&P 500 jumped 1.55%, and the Nasdaq Composite soared 2.69% — marking its biggest one-day percentage gain since May 12 and the strongest two-day rally since November 2024. Trading volumes are expected to ease, with U.S. stock and bond markets closed on Thursday for Thanksgiving and operating on a shortened schedule on Friday.

Market impact: Positive for U.S. equities; sharp tech-led gains boost risk sentiment ahead of the holiday break.

Walmart reported earnings of $0.62 per share, slightly above expectations of $0.60, supported by solid consumer demand and strength in its grocery and e-commerce segments. Revenue also surpassed forecasts at $179.5B, compared with the expected $177.45B. The company’s market capitalization now stands at $853.25B, reflecting continued confidence in its defensive retail positioning.

Market impact: Positive for WMT; strong results reinforce Walmart’s resilience in a challenging consumer environment.

TJX reported quarterly earnings of $1.28 per share, above expectations of $1.23, supported by solid demand across its discount retail chains. Revenue also exceeded forecasts, coming in at $15.1B versus the expected $14.84B. The company’s market capitalization now stands at $162.36B, reflecting strong investor confidence in its resilient off-price model.

Market impact: Positive for TJX; strong results reinforce the defensive appeal of discount retail during a soft consumer environment.

For the three months ended Oct. 26, the company reported Q3 adjusted earnings per share of $1.30, up from $0.78 in the same period a year earlier, on revenue of $57.01B, up 62% from a year ago. Analysts polled by Investing.com anticipated per-share income of $1.25 and revenue of $54.8B.

The company’s data center business, which makes up the bulk of revenue and includes of the company’s next-generation AI chip Blackwell as well as prior generation Hopper AI chips, saw revenue climb 66% to $51.22B, beating estimates of $49.09B. 

Lowe’s reported quarterly earnings of $3.06 per share, above expectations of $2.97, reflecting strong cost control and resilient demand in certain home improvement segments. Revenue came in at $20.81B, just below the forecast of $20.85B. The company’s market capitalization now stands at $127.88B.

Market impact: Neutral to slightly positive; earnings beat supports sentiment, though the small revenue miss may limit upside.

Huazhu (HTHT) delivered stronger-than-expected quarterly results, posting earnings of $4.76 per share, above the forecast of $4.53. Revenue also beat expectations, coming in at $6.96B versus the estimated $6.72B. The company’s market capitalization now stands at $13.83B, supported by continued recovery in hotel occupancy and steady domestic travel demand in China.

Market impact: Positive for HTHT; earnings and revenue beats reinforce confidence in China’s hospitality rebound.

Trip.com ADR reported a powerful earnings beat, posting $27.56 per share versus expectations of $8.09. Revenue also came in stronger at $18.34B, above the forecasted $18.19B. The company’s market capitalization now stands at $46.33B, reflecting solid momentum driven by a sustained recovery in global travel demand.

Market impact: Positive for TCOM; strong earnings and revenue reinforce confidence in the travel sector’s ongoing rebound.