Mixed Asian Markets as Nintendo Rises 5.5% and Lenovo Drops 8%
Asian stock markets opened the week with mixed performances. Japan's Nikkei index fell 0.7%, South Korea's Kospi dropped 1.7%, while Hong Kong's Hang Seng rose 1.9%, and Shanghai remained stable. Oil prices saw moderate gains, with Brent crude up 0.6% to $72.5 per barrel and WTI rising 1% to $70.0 per barrel.
In Japan, software testing company Shift surged 9.5%, leading the Nikkei, and business consulting firm BayCurrent Consulting climbed 8.5%. SoftBank declined 5.3%. Nintendo shares increased 5.5% following the company's announcement over the weekend of a 10% base salary raise for employees aimed at talent retention, contrasting with widespread layoffs in the gaming industry during a challenging year.
In Hong Kong, IDO jumped 7.7%, while Lenovo fell 8%, hitting the bottom of the Hang Seng index. Lenovo's recent presentation at a German conference highlighted expectations that memory chip and semiconductor prices will remain high due to strong AI industry demand. This sustained high pricing has led to market skepticism about Lenovo's ability to meet its profit margin targets, which aim to increase net profit from 3% currently to 5% next year and eventually 8%.
In Seoul, Samsung shares dropped 4.8% and competitor SK Hynix fell 3.2%, following reports that both companies plan to announce extensive investment programs. According to the Korea Economic Daily, Samsung and SK Hynix are expected to reveal investment plans totaling up to 2,000 trillion won (approximately $1.3 trillion) over the next decade. SK Holdings, the major shareholder of Hynix, declined 8%, leading losses on the Kospi index.
