Asia report: Markets mixed as Bank of Korea holds rates

26th Feb 2026 09:05

(Sharecast News) - Asia-Pacific markets rose on Thursday, tracking gains on Wall Street after strong earnings from chipmaker Nvidia and software group Oracle lifted investor sentiment, although the broader tone remained cautious.

"Global equities, which had shown signs of recovery following the recent 'AI scare trade' that unsettled Wall Street earlier this week, began to falter as momentum waned," said Patrick Munnelly, market strategy partner at TickMill.

"Investor sentiment appeared cautious in response to Nvidia's earnings report, even though the company exceeded expectations."

He added that "the MSCI Asia Pacific Index climbed 0.9%, though regional semiconductor stocks faced some downward pressure."

Overnight in the US, Nvidia reported fiscal fourth-quarter adjusted earnings per share of $1.62, beating the $1.53 forecast from analysts surveyed by LSEG, on revenue of $68.13 billion versus expectations of $66.21bn.

Revenue from its core data centre segment surged 75%, and shares gained as much as 2% in extended trading.

However, Munnelly observed that "Nvidia, after an initial surge in after-hours trading, gave up most of its gains, rising just 0.2%," and warned that "Nvidia's latest earnings release raised concerns about a potentially overheated artificial intelligence market."

Tokyo rises amid central bank chatter

In Japan, the Nikkei 225 rose 0.29% to 58,753.39 after earlier crossing the 59,000 mark for the first time, while the broader Topix climbed 0.97% to 3,880.34.

Shift jumped 14.44%, Nomura Research Institute gained 9.5% and NEC Corporation advanced 9.44%.

The rally was fuelled by the so-called "Takaichi trade" after the government nominated Ayano Sato of Aoyama Gakuin University and Toichiro Asada of Chuo University to the Bank of Japan board, both seen as dovish and aligned with prime minister Sanae Takaichi's preference for continued monetary easing.

At the same time, Bank of Japan board member Hajime Takata renewed his call for higher interest rates, saying the bank should "make a further gear shift" as inflation had heated "to the core" and the price stability target was "almost achieved."

His remarks underscored a divide within the board ahead of the 18-19 March policy meeting, where the BoJ is widely expected to keep policy on hold.

Takata reiterated he would decide on a meeting-by-meeting basis and warned of upside risks to prices, having previously proposed raising the benchmark rate to 1% after January's move to 0.75%, the highest level in three decades.

China mixed, Seoul outperforms as BoK stands pat

Mainland Chinese markets were mixed, with the Shanghai Composite slipping 0.01% to 4,146.63 and the Shenzhen Component edging up 0.19% to 14,503.79.

Jiangsu Sanfangxiang Industry fell 9.2%, Hengdian Entertainment dropped 6.9% and Zhejiang Baida Precision Manufacturing declined 6.28%.

In Hong Kong, the Hang Seng Index fell 1.44% to 26,381.02, dragged lower by Zhongsheng Group, down 10.76%, WuXi Biologics, off 7.45%, and New Oriental Education & Technology, which lost 5.09%.

South Korea outperformed, with the Kospi 100 surging 4.71% to 7,278.70.

Hanmi Semiconductor soared 28.44%, LG Innotek climbed 20% and Hyundai Mobis gained 12.67%.

The Bank of Korea kept its benchmark interest rate unchanged at 2.5% for a sixth consecutive meeting, citing stronger-than-expected growth momentum and the need to safeguard financial stability amid a weak currency and housing market risks.

The central bank had cut rates by a cumulative 100 basis points from 3.5% since October 2024 but held steady since May last year.

Sydney, Wellington in the green as NZ business confidence eases

In Australia, the S&P/ASX 200 rose 0.51% to a record 9,175.30, with Megaport up 12.59%, Telix Pharmaceuticals gaining 10.87% and Ramsay Health Care advancing 10.35%.

Across the Tasman Sea, New Zealand's S&P/NZX 50 added 1.07% to 13,670.71, led by Ryman Healthcare, up 5.08%, Summerset Group Holdings, up 4.18%, and NZX, which rose 4.17%.

Fresh data from New Zealand included the ANZ business confidence index easing to 59.2 in February from 64.1, while the own activity outlook ticked up to 52.6 from 51.6.

The net percentage of firms expecting to raise prices fell four points to 53%, but 79% anticipated higher costs, the highest since July 2023.

One-year inflation expectations rose to 2.93% from 2.77%, the highest since July 2024, and wage expectations climbed above 3% for the first time since April 2024, highlighting persistent upside risks to inflation despite projections of a return to the target band in the first quarter.

Dollar mixed as oil prices slip

In currency markets, the dollar was last down 0.2% on the yen to trade at JPY 156.05, as it rose 0.1% against the Aussie to AUD 1.4053 and gained 0.17% on the Kiwi to change hands at NZD 1.6696.

Munnelly noted that "the dollar extended its decline for a second straight session," while "US Treasuries gained, pushing the 10-year yield down by one basis point to 4.04%."

Oil prices were lower, with Brent crude futures last down 0.72% on ICE at $70.34 per barrel, and the NYMEX quote for West Texas Intermediate also falling 0.72% to $64.95.

Reporting by Josh White for Sharecast.com.