Asia report: Stocks mixed as oil stabilises, Taiwanese shares hit another high

(Sharecast News) - Asian stock markets finished mixed on Wednesday as oil prices stabilised, with Chinese and Singaporean indices posting losses while benchmarks in South Korea, Australia and Taiwan rose.

The Hang Seng dropped 1.0%, the Shanghai Composite fell 0.4% and the STI slipped 0.2%, while the KOSPI gained 0.9%, the S&P/ASX 200 rose 0.1% and the Taiex jumped 0.8% to another record close.

Stocks in Seoul and Taipei in particular received a boost from AI and chip stocks.

Japan's Nikkei 225 was closed for the third straight day for public holidays, this time for the Autumnal Equinox holiday.

Falling bond yields did provide some relief amid hopes of diplomatic progress between the US and Iran, along with easing concerns about supplies out of Saudi Arabia and along the Strait of Hormuz. Brent crude was up 0.5% at $99.73 a barrel, but held below the $100 level after five days of losses, holding near a two-week low.

"Asian bonds and Treasury futures caught a bid as oil prices extended their retreat, giving markets another reason to believe the worst of the recent energy shock may be easing," said Patrick Munnelly, partner of market strategy at Tickmill Group.

"The drop in oil is supporting duration sentiment, reducing near-term inflation anxiety and allowing bond markets to stabilise after the recent post-Fed volatility."

In Taiwan, TSMC, Foxconn and MediaTek performed well following another record high for the Nasdaq overnight amid continued positive sentiment surrounding the AI sector. In South Korea, heavyweights Samsung Electronics and SK Hynix both rose strongly.

Also helping Taiwanese stocks was Barclays which upgraded its GDP growth assumptions for the country for the next two years on the back of strong exports in the semiconductor industry and wider tech sector.

Allbaba was providing a drag in China, pulling back after surging the previous session following the launch of the Zhenwu V900 chip, its most powerful chip to date.