Commercial and residential buildings are brightly lit at dawn on Saturday, October 21, 2023, in Seoul, South Korea. Corporate investment.
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Japan’s Nikkei 225 Index It soared to new highs on Thursday, surpassing the 42,000 mark for the first time. Other Asia-Pacific markets rose, driven by gains in large U.S. technology stocks and growing confidence that the Federal Reserve will cut interest rates.
The Nikkei opened up 1.37% and the Topix rose 1.17%, also reaching new highs.
Chip stocks were among the biggest winners of the U.S. trading session. TSMC’s U.S.-listed shares rose 3.5% after revenue from April to June beat Wall Street expectations.
Fellow chip company Qualcomm rose 0.8%, while Broadcom gained about 0.7%. Shares of artificial intelligence darling Nvidia rose 2.7%.
In Asia, investors will be watching for any spillover optimism in the region’s technology stocks, especially in Japan, where chip-related companies have boosted shares. Nikkei 225 Index A record high.
Economic announcements from the region on Thursday will include Japan’s May machinery orders and the Bank of Korea’s interest rate decision.
Korean Cospi The KOSDAQ rose 0.96% ahead of the Bank of Korea’s decision, with the KOSDAQ rising 0.22%.
Australia’s S&P/ASX 200 index rose 0.85%.
Hongkong Hang Seng Index Index futures were at 17,615 points, higher than the Hang Seng Index’s last closing point of 17,471.67 points.
All three major U.S. stock indexes rose overnight, with the S&P 500 and Nasdaq rising 1.02% and 1.18% respectively.
This increase also means that the S&P index exceeded the 5,600 point mark for the first time, setting a new record closing high for the 37th time in 2024.
The Dow Jones Industrial Average rose 1.09%.
Hopes of a rate cut have also fueled the rally, with Dow Jones expecting inflation to hit 3.1% year-on-year in June, down from 3.3% in May.
Excluding volatile food and energy prices, core inflation is expected to have risen 3.4% since June last year. In May, CPI increased by 3.3% year-on-year.
—CNBC’s Brian Evans, Samantha Subin and Jesse Pound contributed to this report.
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