SoftBank shares jumped 13% after the Japanese conglomerate announced a $5.4 billion acquisition of ABB's robotics division, a move that significantly advances its "Physical AI" strategy and will prevent ABB from spinning off the unit. Separately, Hang Seng Bank shares soared nearly 30% following HSBC's proposal to take it private in a HK$290 billion ($37 billion) deal, while HSBC's own shares retreated over 6%. These significant corporate actions unfolded amidst mixed trading across Asian markets and as U.S. equity futures remained steady after the S&P 500 and Nasdaq Composite closed at new record highs stateside, shrugging off an ongoing government shutdown.
Shares of SoftBank jumped as much as 13% Thursday, a day after the Japanese giant announced a deal to buy the robotics division of Swiss engineering firm ABB for $5.4 billion, further advancing SoftBank's AI footprint. The deal, which is subject to regulatory approval globally, means ABB will no longer look to spin off its robotics business as a separately listed company. "SoftBank's next frontier is Physical AI. Together with ABB Robotics, we will unite world-class technology and talent under our shared vision to fuse Artificial Super Intelligence and robotics — driving a groundbreaking evolution that will propel humanity forward," Masayoshi Son, founder of SoftBank, said in a statement. Artificial Super Intelligence, or ASI, is Son's idea of AI that is 10,000 times smarter than humans. Son has looked to position SoftBank at the center of the potential AI boom through investments and acquisitions in different areas of technology. SoftBank owns chip designer Arm, for example, and has a major stake in OpenAI. SoftBank-owned British chip designer Graphcore is also planning to invest $1.3 billion in India, including a new research hub, Bloomberg reported early Thursday. The plans are expected to be announced during British Prime Minister Keir Starmer's visit to India this week. He will be accompanied by a business delegation, the report said, citing sources familiar with the matter. Japan's benchmark Nikkei 225 index added 1.11%, while the Topix index was up 0.36%. In Hong Kong, shares of Hang Seng Bank skyrocketed nearly 30% after HSBC proposed Thursday to take it private, valuing the bank at more than 290 billion Hong Kong dollars ($37 billion). HSBC has asked Hang Seng Bank's board to put forward a privatization proposal to shareholders via a scheme of arrangement under Hong Kong's Companies Ordinance. Shares in Hang Seng Bank would be canceled in exchange for 155 Hong Kong dollars apiece. HSBC owns around 63% of Hang Seng Bank, pegging the deal value at HK$106 billion. Meanwhile, Hong Kong-listed shares of HSBC retreated more than 6%. The Hang Seng Index fell 0.93%, while the Hang Seng Tech Index declined 0.98%. Mainland China's CSI 300 rose 0.4% after coming back from a bumper holiday period. Australia's ASX/S&P 200 rose 0.44%. South Korean markets are closed for a holiday. U.S. equity futures were little changed in early Asian hours after the S&P 500 and Nasdaq Composite scored new records Wednesday stateside as investors shrugged off the government shutdown in its second week. Overnight, the broad index S&P 500 climbed 0.58% to close at 6,753.72, notching its eighth winning day of the last nine. Gains on the index were led by the information technology, utilities and industrials sectors, which notched fresh closing highs. The Nasdaq Composite rose 1.12% to finish at 23,043.38. That's the first time the technology-heavy index has closed above the 23,000 mark. However, the Dow Jones Industrial Average fell 1.20 points to end the day at 46,601.78. — CNBC's Lee Ying Shan, Arjun Kharpal, Alex Harring, Sean Conlon and Sarah Min contributed to this report. SoftBank's shares surged 13% following its announced $5.4 billion acquisition of ABB's robotics division, aligning with Masayoshi Son's 'Physical AI' vision and broadening the conglomerate's significant AI footprint which includes Arm and a stake in OpenAI. This strategic move prevents ABB from spinning off its robotics unit, consolidating key technologies under SoftBank's ambition to fuse Artificial Super Intelligence (ASI) with robotics. Furthermore, SoftBank-owned Graphcore's planned $1.3 billion investment in India, including a new research hub, underscores a broader push into global AI infrastructure. HSBC's proposal to take Hang Seng Bank private at HK$155 per share, valuing the bank at over HK$290 billion, led to a nearly 30% jump in Hang Seng Bank shares. Conversely, HSBC's Hong Kong-listed shares retreated more than 6%, reflecting the market's initial reaction to the transaction details and the perceived value transfer. This privatization, where HSBC already owns approximately 63%, suggests a strategic consolidation of its regional assets. The broader market context saw mixed performance across Asia, with Japan's Nikkei 225 up 1.11% while Hong Kong's Hang Seng Index fell 0.93%. This divergence occurred as U.S. equity markets, specifically the S&P 500 and Nasdaq Composite, reached new record highs, driven by information technology, utilities, and industrials, despite an ongoing government shutdown. The robust performance in U.S. tech provides a positive backdrop for AI-focused investments.
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