Asian Stocks Rise Slightly as Technology Shares Support Markets
Asian stock markets posted modest gains on Thursday, supported by strength in technology and semiconductor stocks, while Chinese equities retreated as a major U.S.-China summit began in Beijing.
Regional markets followed positive momentum from S&P 500 and Wall Street, where U.S. stocks closed at record highs overnight thanks to continued strength in the technology sector.
Investors largely looked past concerns surrounding the Iran conflict and its potential inflationary impact on the global economy.
S&P 500 futures also edged 0.1% higher during Asian trading hours.
Chinese Stocks Pull Back Ahead of Trump-Xi Talks
Chinese equities underperformed broader Asian markets on Thursday, with the Shanghai Shenzhen CSI 300 index falling 0.8% and the Shanghai Composite index declining 0.7%.
The pullback came after both indexes recently climbed to multi-year highs earlier this week, prompting some investors to lock in profits.
Markets had rallied strongly ahead of the highly anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping.
The summit is expected to cover several major geopolitical and economic issues, including trade tariffs, Taiwan, artificial intelligence, and broader U.S.-China relations.
Trump arrived in Beijing alongside several prominent business leaders, fueling hopes that ties between the world’s two largest economies could improve.
Technology Stocks Continue to Drive Asian Markets
Broader Asian markets saw limited gains as investors continued buying technology-related shares, although analysts suggested the recent rally in the sector may be losing momentum.
Japan’s Nikkei 225 and South Korea’s KOSPI index each gained 0.2%.
Hong Kong’s Hang Seng index rose 0.7%, helped mainly by a strong rally in Alibaba shares.
Alibaba stock surged around 5% after the company announced plans to significantly increase artificial intelligence investment over the next three years, helping investors overlook weaker-than-expected fourth-quarter earnings.
The company’s earnings results still showed early signs that its AI investments are beginning to deliver returns.
Australia and India Markets Weaken
Not all regional markets traded higher.
Australia’s ASX 200 index slipped 0.1%, extending losses for a fifth straight session as concerns continued to grow over the economic and inflationary effects of the Iran conflict.
Singapore’s Straits Times index fell 0.2%, while futures linked to India’s Nifty 50 index also declined 0.2%.
Oil Prices and Inflation Risks Remain Key Market Concerns
Global investors remain cautious over potential oil supply disruptions linked to the Iran conflict, especially with crude oil prices staying elevated.
Recent U.S. inflation data also highlighted increasing inflationary pressures connected to rising energy costs and geopolitical tensions in the Middle East.
