Asian stock markets rallied in line with Wall Street’s overnight gains, as investors awaited the Bank of Japan’s policy meeting and digested a flurry of corporate earnings reports.
Tokyo’s benchmark Nikkei 225 index surged 2.4%, hitting its highest level in a month, boosted by strong performance from semiconductor makers. Shares of Renesas Electronics and Tokyo Electronic soared by double digits.
In Greater China, Hong Kong’s Hang Seng index gained 2%, while the Hang Seng Tech Index jumped 3.1%. Chinese AI company Sensetime Group saw its shares surge over 30% after releasing an updated version of its generative AI model.
South Korea’s Kospi index rose 1.9%, led by gains in heavyweight Electronics. Taiwan’s Taiex also climbed by 2.7%.
In Australia, the S&P/ASX 200 index gained 0.1% after data showed consumer price inflation decelerated for the fifth consecutive quarter. Meanwhile, in the United States, futures pointed to a positive open on Wall Street, with the S&P 500 set to extend its recent rally.
A weaker-than-expected report on U.S. business activity provided some support to the market, as investors hope for a slowdown in economic growth that does not lead to a severe recession.
A slew of positive earnings reports also bolstered sentiment, with companies like GE Aerospace, Kimberly-Clark, General Motors, and Danaher surpassing analyst expectations.
However, concerns remain about high valuations and the possibility of persistent inflation, with Federal Reserve officials indicating that interest rates may need to remain elevated for a prolonged period.
In commodities trading, oil prices edged higher, while the U.S. dollar strengthened against the yen and euro.
