Asian stock markets rose on Thursday, supported by renewed optimism in artificial intelligence and expectations of a U.S. Federal Reserve rate cut. China’s markets led gains, while Japan’s Nikkei 225 surged to a fresh record high despite political turmoil.
The Nikkei jumped over 1% to 44,288.47 points, marking its second time above 44,000 this week. The rally followed Prime Minister Shigeru Ishiba’s resignation after election losses, fueling hopes for more aggressive fiscal and monetary policies from his successor. Sentiment was further lifted by a U.S.-Japan trade deal cutting tariffs on Japanese auto exports by mid-September. The broader TOPIX index edged up 0.2%, hovering near record highs.
In China, the Shanghai Composite gained 1.1% and the CSI 300 advanced nearly 2%, tracking Wall Street’s rally driven by AI stocks. Oracle’s multibillion-dollar AI contracts boosted global chipmakers, fueling optimism in the sector. Hong Kong’s Hang Seng pared losses to trade 0.3% lower, while its TECH sub-index rebounded from a 1.3% drop to trade flat.
Elsewhere in Asia, South Korea’s KOSPI rose 0.4%, Singapore’s Straits Times Index remained steady, while Australia’s ASX 200 slipped 0.5% and India’s Nifty 50 traded flat.
On Wall Street, the S&P 500 and NASDAQ closed at record highs for the second consecutive session, supported by strong tech momentum. U.S. stock futures also traded slightly higher during Asian hours.
Economic data continued to drive investor sentiment. U.S. producer price inflation unexpectedly eased in August, bolstering expectations of a Fed rate cut at its September 17 meeting. Traders now await U.S. consumer price data due later Thursday, which could provide clearer signals on the pace of monetary easing.


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