By Investing.com– Most Asian stocks rose on Thursday amid persistent cheer over stimulus measures in China, while technology stocks- particularly chipmakers- rallied tracking strong earnings from U.S. peer Micron.
Regional markets shrugged off a weak overnight session on Wall Street, where U.S. stock indexes fell from record highs amid anticipation of more cues from the Federal Reserve this week.
But Wall Street futures rose in Asian trade, buoyed by gains in tech and chipmakers. Micron Technology Inc (NASDAQ:MU) led these gains after the memory chip maker clocked strong earnings on artificial intelligence demand.
Focus this week is on an upcoming address by Fed Chair Jerome Powell, as well as PCE price index data- the Fed’s preferred inflation gauge.
Asian tech gains as Micron boosts chipmakers
Tech-heavy indexes were the best performers in Asia, with South Korea’s KOSPI up 2.1%, while Japan’s Nikkei 225 and TOPIX indexes rose 2.4% and 1.8%, respectively.
South Korean memory chip supplier SK Hynix Inc (KS:000660) rallied nearly 9% tracking Micron, while the firm also began mass production of its most advanced high-bandwith memory chips, which are a key component of AI development.
Japan’s Advantest Corp. (TYO:6857) and Tokyo Electron Ltd. (TYO:8035) rallied 4.7% and 6.7%, respectively, while Taiwan’s TSMC (TW:2330) rose 1%.
Positive earnings from Micron, which also presented a strong outlook, boosted the notion that the AI trade remained in play, and that chipmakers were likely to continue benefiting from strong AI-fueled demand.
This notion sparked widespread buying in tech, with sectors beyond chipmakers also gaining ground.
Chinese stocks extend gains on stimulus cheer
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 0.6% each, extending gains into a seventh consecutive session as they rebounded from seven-month lows hit earlier in September.
Hong Kong’s Hang Seng index added 1.5%, also benefiting from gains in heavyweight tech stocks.
Chinese markets were on a tear this week after Beijing announced a string of key stimulus measures, including a cut to bank reserve requirements, as well as lower mortgage rates.
Local markets benefited from heavy bargain buying, after largely lagging their global peers for at least two years amid persistent concerns over a slowing Chinese economy.
But despite the increased stimulus, analysts said Beijing needed to do more to shore up growth, especially on the fiscal front.
Broader Asian markets advanced. Australia’s ASX 200 rose 0.9%, coming close to record highs amid optimism over China, which is a key trading partner for the country.
Futures for India’s Nifty 50 index pointed to a strong open, after the index hit a record high above 26,000 points, also clearing a key resistance level.