Asian Stocks Rise on Tech Enthusiasm, Oracle’s AI Boost Echoes Wall Street Records
Asian stock markets largely trended higher on Thursday, propelled by a strong performance in technology-related shares. This regional optimism echoed Wall Street’s recent stride to fresh record highs, fueled by an unexpectedly favorable US inflation report and a groundbreaking forecast for artificial intelligence-driven growth from software giant Oracle Corporation.
Asian Markets Buoyed by Tech and AI Optimism
Tokyo Leads the Charge, SoftBank Soars
In Tokyo, the benchmark Nikkei 225 index advanced by 1.2%, closing at 44,372.50. A significant contributor to this rise was SoftBank Group, the global tech investment firm, whose shares jumped an impressive 8.3% for the second consecutive day. Locally, fresh economic data revealed that Japan’s producer prices edged up 2.7% year-on-year in August. This figure, consistent with market expectations, slightly outpaced July’s 2.5% rise, primarily driven by increasing costs in food, transport equipment, and machinery sectors.
Mixed Fortunes in Chinese Markets, Chipmakers Shine
Chinese markets presented a mixed picture. Hong Kong’s Hang Seng index experienced a modest dip of 0.3%, settling at 26,127.77. In contrast, the Shanghai Composite index showed resilience, climbing 1.7% to 3,875.31. Notably, major chipmakers in mainland China posted strong gains, with Semiconductor Manufacturing International Corp (SMIC) adding over 6%, Hua Hong Semiconductor rising 4.8%, and Cambricon Technologies, often dubbed “China’s Nvidia,” surging by 9%, underscoring the pervasive influence of the global AI boom.
Elsewhere in Asia
Further across Asia, South Korea’s Kospi index rose 0.9% to 3,344.20. Australia’s S&P/ASX 200, however, bucked the trend with a 0.3% decline, finishing at 8,805.00. India’s BSE Sensex registered a marginal gain of less than 0.2%, while Taiwan’s Taiex, after trimming earlier advances, closed up 0.1%.
Wall Street’s Influence: Inflation Hopes and Rate Cut Anticipation
The positive sentiment across Asia largely stemmed from the preceding trading day on Wall Street. The S&P 500 index climbed 0.3% on Wednesday, reaching an all-time high for the second consecutive session. The Dow Jones Industrial Average, however, retreated by 220 points, or 0.5%, while the tech-heavy Nasdaq composite inched up by less than 0.1%, both having set records just a day prior.
This robust performance in US equities is predicated on market expectations of a delicate economic balance: the economy slowing sufficiently to prompt the Federal Reserve to implement interest rate cuts, yet not so drastically as to trigger a recession, all while inflation remains under control. An encouraging sign emerged on Wednesday with a report indicating that inflation at the U.S. wholesale level unexpectedly softened in August. Investors now keenly await a potentially more impactful report on Thursday, which will shed light on consumer-level inflation for U.S. households. Traders are already anticipating the Fed’s first interest rate cut of the year at its upcoming meeting, contingent on sustained mild inflation data.
Tech Giants Propel Gains: Oracle Soars on AI, Apple Dips
Driving much of Wall Street’s tech surge was Oracle Corporation. The software giant’s stock leaped an extraordinary 35.9%, marking its best single-day performance since 1992. This monumental surge was fueled by the company’s “stunning forecast” for revenue growth, directly attributing it to the insatiable demand for its artificial intelligence solutions, despite its latest quarterly results narrowly missing analysts’ expectations. Similarly, Taiwan Semiconductor Manufacturing Co. (TSMC), a pivotal manufacturer of chips vital for AI and advanced computing, saw its U.S.-listed shares climb 3.8% following its announcement of a robust nearly 34% year-on-year revenue increase in August. Conversely, Apple experienced a 3.2% drop, significantly contributing to the Dow’s decline. Analysts suggested that the unveiling of its new iPhones the day before offered no major surprises, potentially limiting future demand growth.
Commodities and Currencies: Oil Dips, Dollar Strengthens
In commodity markets on Thursday, benchmark U.S. crude oil shed 11 cents, trading at $63.56 per barrel, while Brent crude, the international standard, fell 8 cents to $67.41 per barrel. In currency trading, the U.S. dollar strengthened against the Japanese yen, rising to 147.78 yen from 147.36 yen. The euro, meanwhile, slid against the dollar, trading at $1.1693 from $1.1704.
Expert Perspective: A “Lively” but “Flat” Asian Market
Stephen Innes of SPI Asset Management summarized the regional dynamics, noting, “Asia’s Thursday tape was the kind of market that looks lively from a distance but flat when you press your nose against the glass. After Wall Street’s record sprint, traders in Tokyo and Seoul tried to carry the baton. Still, Hong Kong and Sydney promptly fumbled it, leaving the MSCI Asia-Pacific index pacing on the spot after five straight daily advances.”
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By TERESA CEROJANO (with contributions from AP Business Writer Stan Choe in New York)
