Most Asian stock markets advanced on Thursday, with Japan rallying to a fresh record high after the U.S. Federal Reserve reduced interest rates and signaled further cuts.
Bucking the regional trend, shares in Australia and New Zealand fell. Australia’s energy sector losses dragged the benchmark lower despite a soft jobs report supporting RBA interest rate cut bets. New Zealand equities declined after a weak economic growth print.
Benchmark indices on Wall Street ended mixed on Wednesday, while futures tied to them rose in early Asia hours on Thursday after the Fed cut.
Fed cuts rates as expected; Nikkei hits new peak
The Fed on Wednesday cut its benchmark rate by 25 basis points to a range of 4.00–4.25%, its first reduction since December.
Policymakers projected two further cuts before year-end, with Chair Jerome Powell saying the move was intended to “manage risks” as the U.S. labour market softened.
Traders lifted bets that U.S. borrowing costs would fall below 3.5% in 2026, boosting risk appetite across Asia.
In Tokyo, the Nikkei 225 jumped 1.2% to a fresh record peak of 45,296.21 points, having jumped nearly 15% this year despite U.S. tariff pressures.
The broader TOPIX index rose 0.6%. Technology and energy shares led the advance, while a weaker yen also supported exporters.
In Seoul, the KOSPI surged 1%, climbing back near record highs touched earlier this week.
The benchmark drew strength from heavyweight chipmakers SK Hynix Inc (KS:000660) and Samsung Electronics (KS:005930) amid renewed AI optimism in the U.S.
China shares at decade-high; US tech trade talks in focus
Chinese tech stocks paused their rally as investors assessed the fragile trade relations with the U.S. after talks in Madrid earlier this week.
A Financial Times report stated that China’s internet regulator has instructed domestic technology firms to stop buying all of Nvidia’s artificial intelligence chips and terminate their existing orders.
Hong Kong’s Hang Seng edged 0.3% lower on Thursday, but Chinese chipmaking stocks surged on optimism around domestic demand.
Semiconductor Manufacturing International Corp (SMIC) (HK:0981) shares jumped over 5%.
Hong Kong-listed Baidu (HK:9888) shares advanced 6% after surging 16% in the previous session, extending their stellar rally amid reports that Baidu has begun using its internally developed Kunlun P800 chip to train its AI models.
China’s Shanghai Shenzhen CSI 300 edged 0.3% higher, while the Shanghai Composite index gained 0.5%, hitting a fresh decade-high level.
Singapore’s Straits Times Index gained 0.2%, while India’s Nifty 50 opened 0.4% higher on Thursday.
Australia soft jobs report, NZ weak Q2 GDP in focus
Australian shares bucked the regional trend, with the S&P/ASX 200 slipping 0.6%, dragged by the energy sub-index dropping over 5% on lower oil prices.
Data on Thursday showed that employment unexpectedly fell in August. The economy shed about 5,400 jobs, including a 41,000 drop in full-time roles, even as part-time positions increased.
The unemployment rate held at 4.2% but hours worked fell 0.4%, pointing to a softer labour market.
The report suggested that the labor market may be softening gradually, which could encourage the Reserve Bank of Australia to cut rates again this year.
In New Zealand, the NZX 50 index retreated nearly 1% after data showed gross domestic product shrank 0.9% in the second quarter, far weaker than forecasts for a 0.3% decline.
Annual GDP contracted by 0.6%, underscoring broad weakness in domestic demand. The release increased pressure on the Reserve Bank of New Zealand to accelerate monetary easing.
Source :
https://www.investing.com/news/stock-market-news/asia-stocks-climb-after-fed-rate-cut-japan-rallies-to-new-record-high-4243738
