Asian Stocks Rise on AI Optimism and Strong China Reopening; Japan Nears Record Highs
Asian stocks climbed on Thursday, lifted mainly by strong gains in technology shares, as optimism over artificial intelligence (AI) demand drove buying in chipmaking and related sectors.
Mainland Chinese markets reopened on a strong note after a week-long Golden Week holiday, supported by reports of robust travel and consumer spending during the break. However, Hong Kong markets underperformed due to steep losses in health technology stocks, following reports that Microsoft plans to expand into the healthcare sector.
HSBC also weighed heavily on the Hang Seng Index after proposing to privatize its subsidiary Hang Seng Bank.
Across the region, Asian markets tracked a positive lead from Wall Street, where both the S&P 500 and NASDAQ Composite hit record highs amid a broad tech rally. The sector was boosted by upbeat comments from NVIDIA (NASDAQ: NVDA) on AI-driven demand and growing confidence ahead of the Q3 earnings season.
Minutes from the Federal Reserve’s September meeting showed a dovish tone, raising hopes for more interest rate cuts this year. Traders now await a speech from Fed Chair Jerome Powell for further policy cues.
Meanwhile, sentiment was also supported by reports of a U.S.-brokered ceasefire between Israel and Hamas, which reduced geopolitical tensions.
Japan Stocks Near Record Highs on Tech Strength
Japanese equities extended gains, with the Nikkei 225 up 1.5% and the TOPIX rising 0.4%, both nearing record closing levels.
Tech shares led the rally, as SoftBank Group (TYO:9984) soared over 11% to a record high after announcing a $5.4 billion deal to acquire the robotics arm of ABB Ltd (SIX:ABBN).
Other industrial firms — including Yaskawa Electric (TYO:6506), Ebara Corp. (TYO:6361), and Fuji Electric (TYO:6504) — advanced strongly on optimism over new fiscal stimulus under Prime Minister Sanae Takaichi.
Investor sentiment was further supported by expectations that the Bank of Japan will delay future interest rate hikes, although a stabilization in the yen capped some exporter gains.
China Reopens Strong; Hong Kong Trails on Healthtech Losses
China’s Shanghai Composite and CSI 300 indices rose 1.3% and 1.6%, respectively, as trading resumed. Tech and industrial stocks, particularly chipmakers, rallied in catch-up moves following global gains during China’s market closure.
State media reported that consumer spending remained strong during the Golden Week holiday, with travel up 6.2% year-on-year and retail sales climbing 3.3% in the first four days. The data lifted optimism about a gradual recovery in domestic consumption, despite ongoing deflationary pressures.
In contrast, Hong Kong’s Hang Seng Index fluctuated, rebounding 0.3% after falling 1% earlier in the session. Healthtech stocks dragged the index lower after a Wall Street Journal report said Microsoft (NASDAQ: MSFT) was planning to enter the AI-powered healthcare sector.
Alibaba Health (HK:0241) and JD Health (HK:6618) dropped 3.6% and 4.7%, while Sino Biopharmaceutical (HK:1177) and Hansoh Pharmaceutical (HK:3692) plunged 8.1% and 6.8%, respectively.
HSBC (HK:0005) tumbled more than 6% after proposing a HK$106 billion ($13.6 billion) deal to privatize Hang Seng Bank (HK:0011), which surged 40%, becoming Hong Kong’s top performer of the day.
Regional Markets Mixed but Tech Leads
Elsewhere in Asia, tech strength continued to lift regional benchmarks. Taiwan’s Weighted Index hit a new record high, while Australia’s ASX 200 added 0.3%. India’s Nifty 50 gained 0.2%, holding above 25,000 points, whereas Singapore’s Straits Times Index slipped 0.3%.
South Korean markets were closed for a public holiday.
