Most Asian equities advanced Wednesday, with Hong Kong leading on a sharp rebound in local technology names, while Japan’s Nikkei 225 struggled for traction as a steep drop in SoftBank Group offset cyclical strength.

U.S. risk appetite provided a modest tailwind after cyclicals outperformed on Wall Street amid hopes the U.S. government shutdown will end this week. S&P 500 futures edged up 0.2% ahead of a key vote to reopen the government.

Hong Kong outperforms on tech and health-tech

The Hang Seng rose ~1%, hitting a one-month high as dip-buyers rotated into growth shares. JD Health climbed 5.8% and Alibaba Health gained 3.6%. Xiaomi advanced 3.8% after industry data showed its YU7 topped Tesla’s Model Y in China October sales; Xiaomi sold 48,654 EVs (including 33,662 YU7 units) versus Tesla’s 26,006 vehicles in China. Mainland indices were more subdued, with CSI 300 and Shanghai Composite trading flat-to-lower amid reports Beijing may restrict U.S. military access to rare earths.

Japan: SoftBank sinks, Sony shines

The Nikkei 225 was little changed as gains in cyclicals and Sony (+~3%) on a beat-and-raise quarter were offset by SoftBank (−~10%), which disclosed it sold its entire Nvidia stake (31.2mn shares for $5.8bn) in October. Despite robust fiscal Q2 results and AI-related gains, the divestment headline weighed on the index. Broader TOPIX rose ~1% on cyclical strength.

Elsewhere in Asia

• South Korea’s KOSPI +0.8%: cyclical gains offset weakness in major chipmakers.
• Australia’s ASX 200 +0.2% and Singapore’s STI +0.3% in cautious trade.
• India Nifty 50 futures −0.2%, signaling profit-taking after a three-day run.

Outlook

With shutdown resolution in sight and tech sentiment stabilizing, North Asia retains a near-term bid. Still, index leadership remains narrow—concentrated in select tech and cyclicals—while China’s growth jitters and policy headlines continue to curb broader risk-taking. The next leg hinges on confirmation of a U.S. reopening and incoming guidance from Asia’s tech heavyweights.