Asian Shares Mixed; Japan's Nikkei Closes At 3-week High

(RTTNews) - Asian stocks ended mixed on Thursday after Microsoft reportedly lowered its AI product sales targets, reviving worries over softer AI demand and margins.

Investors also adopted a cautious stance before rate decisions by the Federal Reserve and the Bank of Japan in coming days.

The dollar was under pressure as weak U.S. data fueled bets on an imminent Fed rate cut. Gold ticked lower, while oil prices rose as Russia-Ukraine tensions escalated.

China's Shanghai Composite index finished marginally lower at 3,875.79 after a choppy session on concerns over slowing services growth and a prolonged property slump. Hong Kong's Hang Seng index rose 0.68 percent to 25,935.90.

Japanese markets surged, with chipmakers in the AI supply chain gaining ground after reports emerged that Nvidia CEO, Huang, met with President Trump to discuss export controls on Nvidia's AI chips.

The Nikkei average jumped 2.33 percent to 51,028.42, extending its rally for a third straight session and reaching a three-week closing high.

The broader Topix index settled 1.92 percent higher at 3,398.21. Tokyo Electron climbed 3.2 percent and SoftBank Group shares surged 9.2 percent.

Seoul stocks ended a tad lower to snap a two-day winning streak. The Kospi average slipped 0.19 percent to 4,028.51, with chipmakers leading losses on renewed concerns over stretched valuations in artificial intelligence (AI).

Automaker Hyundai Motor surged 6.4 percent and Kia Corp added 1.4 percent after the U.S. confirmed a tariff cut to 15 percent on key South Korean imports such as automobiles.

Australian markets eked out modest gains as strong copper prices boosted mining stocks. Data showed household spending surged by the most in almost two years in October, lifting rate hike bets.

Also, the goods trade surplus widened to AUD 4.39 billion in October 2025, surpassing market expectations as exports of gold climbed for a second month.

The benchmark S&P/ASX 200 inched up 0.27 percent to 8,618.40 while the broader All Ordinaries index closed up 0.14 percent at 8,906.70.

Across the Tasman, New Zealand's benchmark S&P/NX-50 index ended down 0.49 percent at 13,515.62, snapping a two-day winning streak.

U.S. stocks rose overnight as weak ADP jobs data reinforced views that the Federal Reserve will cut interest rates next week.

Payrolls processor ADP reported that private sector employment surprisingly declined by 32,000 in November after climbing by an upwardly revised 47,000 jobs in October. Economists had expected an increase of 10,000 jobs for the month.

Separate data revealed that U.S. services activity expanded at a slightly faster pace in November.

The Dow jumped 0.9 percent, the tech-heavy Nasdaq Composite inched up 0.2 percent and the S&P 500 added 0.3 percent.