Shares of SoftBank Group soared on Monday thanks to a deal with Nvidia. However, before discussing the share of the conglomerate, let’s have a look at the stocks in Asia.
Interestingly, stocks in the Asia Pacific strengthened their positions, as investors analyzed the information regarding the SoftBank-Nvidia deal.
South Korea’s Kospi gained 1.3% on the day to 2’427.91.
In Japan, the Nikkei 225 added 0.65% to close at 23’559.30. In the meantime, the Topix index advanced 0.88% to end its trading day at 1’651.10.
Notably, mainland Chinese stocks saw gains on the day. The Shanghai Composite gained 0.57% to about 3’278.81. Moreover, the Shenzhen Component advanced 0.611% to around 13’021.99.
Australia’s S&P/ASX 200 advanced about 0.68% to 5’899.50.
SoftBank and Nvidia
Let’s get back to the shares of Japan’s conglomerate SoftBank Group. As stated above, shares jumped more than 8% on Monday.
It is worth mentioning that, shares of SoftBank jumped around 9% following an announcement that the firm made the decision to sell chip designer Arm to Nvidia.
Notably, Nvidia agreed to buy the chip designer in a deal worth $40 billion. The companies announced this deal two days ago. It is worth mentioning that, the deal will be a mix of $21.5 billion in Nvidia stock and $12 billion in cash, including $2 billion payable at signing.
Moreover, this announcement helped to boost the shares of major chip firms in the region. For instance, shares of SK Hynix in South Korea gained 2.04%. Furthermore, Samsung Electronics advanced 2.37%.
Moreover, shares of Taiwan Semiconductor Manufacturing Company also gained 1.03%.
Last but not least, investors are closely monitoring the situation in Japan. As a reminder, the successor to Prime Minister Shinzo Abe was announced on Monday. Yoshihide Suga will replace Japan’s long-serving prime minister.
Yoshihide Suga won a ruling Liberal Democratic Party leadership election on Monday. Last month, Shinzo Abe decided to leave his post.