SoftBank shares continue to fall after WeWork bailout — Asian market latest

Shares were down another 2.7% in Tokyo, extending earlier losses. The stock closed down 2.5% Wednesday.

SoftBank will pump $5 billion into The We Company and accelerate a $1.5 billion equity investment originally due to the company next year. SoftBank, already WeWork’s largest investor, is also offering to buy up to $3 billion worth of stock from existing investors and shareholders. The Japanese tech company will take ownership of about 80% of WeWork.

Asian stocks were otherwise mixed Thursday, with shares in South Korea edging lower after the country reported weak economic growth.

Japan’s Nikkei 225 (N225) rose 0.5%, while Hong Kong’s Hang Seng Index (HSI) increased 0.6%. China’s Shanghai Composite Index (SHCOMP) gained 0.3% in a choppy session.
But South Korea’s Kospi (KOSPI) edged down 0.2%, reversing a higher open.
The South Korean economy grew by 0.4% in the third quarter compared to the previous quarter, according to estimates released by the Bank of Korea on Thursday. That’s less than the 0.5% gain that analysts who were polled by Reuters expected.

SK Hynix, a South Korean chipmaker that is one of the world’s largest, reported a net profit of 495 billion Korean won ($423 million) in the third quarter, an 89% drop compared to a year earlier. But that profit beat analyst estimates, according to Refinitiv data. The company’s stock advanced 1.8% in Seoul.

Futures for the Dow (INDU) and S&P 500 (SPX) were flat Thursday during Asian hours, following a higher close on Wall Street. Nasdaq (COMP) futures ticked higher.

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Rachel Meadows

Rachel Meadows

Trending topics news writer who enjoys cooking, walking her dog and travel.

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