Asian stocks mostly gain while Nikkei slips on interest rate concerns

By Kim Yeon-jae Posted : December 5, 2025, 16:56 Updated : December 5, 2025, 16:59
Graphics by AJP Song Ji-yoon
SEOUL, December 5 (AJP) - Asian stock markets closed mixed on Friday, with most bourses, including South Korea's, posting gains, while Japan slipped amid uncertainty over its benchmark interest rate.

In Seoul, the benchmark KOSPI closed at 4,096.13, up 1.68 percentage points from the previous session. Foreign investors buoyed the market with net purchases of stocks worth 770.7 billion Korean won ($524 million).

The inflow appears to be driven by investors seeking other opportunities amid rising uncertainty over Japan's monetary policy. Institutions led the rally with net purchases of 1.2 trillion won, while retail investors took profits by selling 1.94 trillion won.

The won strengthened against the greenback, trading at 1,470, lifted by foreign capital inflows into the market.

The hottest stock on the KOSPI was Hyundai Motor, which surged a whopping 11.11 percent to 315,000 won, recording a new high.

The surge appears to reflect relief over a 15-percent tariff being retroactively applied after Seoul and Washington finalized their trade talks, along with expectations of accelerated development of in-house autonomous driving technologies.

LG Electronics also continued its upward trend, closing 5.17 percent higher at 99,700 won, reflecting strong investor confidence in its next-generation growth strategies including its Software-Defined Vehicle (SDV) initiative and automotive electronics business.

Samsung Electronics closed 3.14 percent higher at 108,400 won, approaching the 110,000-won mark, while SK hynix edged up just 0.37 percent to 544,000 won.

The junior KOSDAQ, after briefly surpassing 5 trillion won in mid-day trading on hopes for Seoul's market stimulus, instead closed 0.55 percent lower at 924.74.

Japan's Nikkei 225 fell 1.03 percent to 50,503, pressured by Bank of Japan Governor Kazuo Ueda's comments the previous day hinting at a cautious approach to raising interest rates.

Major stocks fell across the board, with Toyota dropping 2.71 percent to 3,019 yen ($19.53) and Sony sliding 2.24 percent to 4,320 yen. Chip-related stocks mostly declined, with Advantest falling 2.22 percent to 20,235 yen and Tokyo Electron dropping 2.54 percent to 32,960 yen. But semiconductor circuit board maker Ibiden surged 6.77 percent to 12,695 yen.

Taiwan's TAIEX closed 0.67 percent higher at 27,980.89. TSMC performed well, closing 1.04 percent higher at 1,460 Taiwan dollars ($46.68). MediaTek also closed 1.42 percent higher at 1,425 Taiwan dollars.

With the Shanghai Composite Index trading 0.66 percent higher at 3,900 as the end of trading, Chinese markets rallied on expectations of economic stimulus measures, supported by selective buying in technology stocks.

Chinese markets rallied on stimulus expectations and selective tech stock buying, with the Shanghai Composite Index closing about 0.66 percent higher at 3,900. The SZSE Component rose 0.98 percent to close at 13,133 and CATL also gained 1.48 percent to finish at 389 yuan ($55.01).

In Hong Kong, the Hang Seng Index gained 0.47 percent to 26,059, with Xiaomi climbing 2 percent to HK$42.82 ($5.50) amid strong buying in the tech sector.

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