Last week’s Jakota markets:
- Japan’s Nikkei 225 rose 0.2% as the conclusion of the longest U.S. government shutdown in history improved global sentiment, though AI overvaluation concerns continued to pressure tech shares
- South Korea’s KOSPI gained 1.5% for the week despite a sharp 3.8% Friday selloff triggered by fading hopes for near term Federal Reserve rate cuts
- Taiwan’s TAIEX fell 0.9%, marking its second consecutive weekly decline as investors worried about a more hawkish Fed policy shift
- The JAKOTA Blue Chip 150 Index inched up 0.4%, with 102 of 150 constituents posting gains, led by game developer Nexon’s 14.7% surge
Japan
Japan’s stock market posted a modest gain this week, with the Nikkei 225 edging up 0.2% as global sentiment improved following the end of the longest government shutdown in U.S. history. Concerns about overvaluation in the Ai sector, however, continued to weigh on the country’s technology stocks.
The Japanese government is considering a fiscal stimulus package of roughly ¥17 trillion to support the economy, a plan that would include tax cuts, utility subsidies and possible fuel price relief.
Sanae Takaichi, Japan’s new prime minister, has signalled a push for more flexible spending, moving to revisit the government’s single year fiscal discipline target while outlining plans for a multiyear framework. She has argued that “responsible but aggressive” fiscal outlays are needed to support economic growth. Bank of Japan (BoJ) Governor Kazuo Ueda, meanwhile, signalled that the country is making progress towards meeting the conditions for tightening monetary policy, noting that underlying inflation – excluding temporary factors – is gradually moving towards the BoJ’s 2% target.
A monthly Reuters Tankan poll, which mirrors the BoJ’s quarterly business survey, showed manufacturer sentiment climbing to its strongest level in nearly four years in November. The index rose to positive 17 from positive 8 in October, with exporters, especially in the electronics and auto industries, benefitting from a weaker yen that has bolstered overseas demand.
South Korea
South Korea’s stock market advanced this week, with the KOSPI gaining 1.5% despite volatile trading that included a sharp Friday selloff.
The KOSPI climbed steadily from Monday through Thursday, briefly topping 4,170, as markets drew comfort from the end of the record long U.S. government shutdown. But the index slumped 3.8% on Friday, ending a four day rally as diminishing hopes for a near term Federal Reserve rate cut triggered broad selling. Foreign investors and institutions turned into net sellers on Friday, with foreigners unloading ₩2.4 trillion and institutions ₩900 billion.
Bank of Korea (BOK) Governor Rhee Chang-yong said on Wednesday that the central bank will press ahead with its monetary easing cycle but signalled that the scope and pace of future rate cuts – as well as any potential policy shift – will depend on incoming economic data.
The state run Korea Development Institute (KDI) raised its 2025 growth forecast to 0.9%, citing improvements in private consumption. The revision marks a 0.1 percentage point increase from its August outlook. For 2026, the think tank now expects growth of 1.8%, up 0.2 percentage point from its previous estimate.
The KDI said the economy is showing “moderate improvement.” Domestic demand has been held back by weak construction investment, but a recovery in consumer spending has helped offset broader softness. The institute noted that exports have posted modest gains driven by strong semiconductor demand, despite deteriorating trade conditions stemming from U.S. tariff policies. It expects the recovery to continue at a gradual pace, led mainly by consumption.
Taiwan
Taiwan’s stock market extended its losses for a second straight week, with the TAIEX slipping 0.9% amid renewed concerns that the Federal Reserve is turning more hawkish in its approach to rate cuts.
JAKOTA Blue Chip 150 Index
The JAKOTA Blue Chip 150 Index edged up 0.4% this week, with 102 of its 150 constituents posting gains.
Nexon, a Japanese online and mobile game developer, emerged as the top performer on the index this week, with shares surging around 14.7% after the company reported quarterly results. Revenue of ¥119 billion ($792 million) came in slightly below expectations, but earnings impressed investors, with statutory EPS of ¥47.78 beating estimates by roughly 40%. The key driver was the launch of Arc Raiders, which drew 700,000 concurrent players – the most successful launch in the company’s history.
KIOXIA, a Japanese memory chip manufacturer that was the index’s top performer last week, tumbled 16.7% this week after the company posted September quarter results that fell short of market expectations.
The company reported non GAAP revenue of ¥448.3 billion ($2.98 billion), up 31% from the prior quarter. Adjusted gross margin improved to 32.5%, an increase of 5.1 percentage points, and operating profit reached ¥87.2 billion, in line with some forecasts but below recent market expectations of ¥90-100 billion.
For the December quarter, KIOXIA guided revenue to about ¥525 billion at the midpoint, a 17% sequential increase driven by growth in both smart device and SSD storage lines. Its operating profit outlook of ¥120 billion, however, lagged recent consensus expectations of ¥150-180 billion.
