Asian Stocks Rebound as Tech Valuation Fears Ease; Australia Trade Surplus Widens
Asian stock markets rebounded on Thursday, led by Japan and China, as concerns over overvalued technology shares eased and investors assessed new trade data from Australia. The recovery followed a tech-led selloff on Wall Street that had pressured global markets a day earlier.
Major U.S. indices closed higher overnight, with futures trading steady as of 04:07 GMT, offering some relief to risk sentiment across Asia.
Japan and China Lead Regional Gains
Japan’s Nikkei 225 index climbed 1.5% after a steep 2.5% decline in the previous session, while the broader TOPIX rose 1.4%.
“Some profit-taking is natural after strong gains in recent weeks, especially for the Nikkei,” analysts at UBS noted.
In China, the Shanghai Shenzhen CSI 300 jumped 1.4%, supported by buying in large-cap tech and consumer stocks. Hong Kong’s Hang Seng index rose 1.6%, with the Hang Seng TECH sub-index surging over 2% as semiconductor and AI-related shares recovered.
A Reuters report suggesting that Beijing plans to restrict foreign-made AI chips in state-funded data centers further boosted demand for Chinese chipmakers.
South Korea’s KOSPI also recovered 1.3%, bouncing back from a 6% drop on Wednesday. Analysts said the correction was likely short-lived, reflecting valuation adjustments after a long rally.
U.S. Tariff Hearings Add to Global Trade Focus
Investors also monitored U.S. Supreme Court hearings on the legality of tariffs imposed by former President Donald Trump. Justices expressed skepticism about the broad use of emergency powers to implement such levies, a case that could shape future global trade policy.
Australia’s Trade Surplus Expands on Strong Exports
Elsewhere, Australia’s S&P/ASX 200 rose 0.3%, supported by strong trade data. The country’s trade surplus widened sharply to A$3.94 billion in September from A$1.11 billion in August, driven by a surge in exports—particularly in commodities—while imports slowed.
Singapore’s Straits Times Index advanced 1.3%, and India’s Nifty 50 futures traded slightly lower.
Regional Banks Report Mixed Earnings
Regional bank stocks drew attention as quarterly results were released.
National Australia Bank (ASX:NAB) shares fell 4% after posting a slightly lower annual net profit, though results met expectations.
In Singapore, DBS Group (SGX:DBSM) rose 3%, reporting record third-quarter income supported by wealth management and deposit growth.
Meanwhile, United Overseas Bank (SGX:UOBH) declined 3.5% after net profit dropped 72%, hit by higher credit provisions. The bank also projected a lower net interest margin for 2026.
