Asian shares mostly advanced on Thursday, buoyed by the record highs reached on Wall Street.
Japan’s Nikkei 225 index increased by 0.3% to 39,390.33 during afternoon trading. Australia’s S&P/ASX 200 rose 0.4% to 8,223.00, while South Korea’s Kospi added 0.5% to 2,607.45.
In a significant rebound, Hong Kong’s Hang Seng index surged 3.7% to 21,409.30, recovering from a tumultuous trading session the previous day. Earlier this week, the Hang Seng had fallen more than 9%, marking its steepest decline since the global financial crisis of 2008. The Shanghai Composite also saw gains, climbing 2.7% to 3,348.31.
Chinese stocks experienced volatility earlier this week amid optimism for potential economic stimulus, followed by disappointment over the lack of immediate support measures. A positive development came with the announcement from China’s Finance Ministry of a press briefing scheduled for Saturday, which is expected to clarify government strategies.
“There’s still a glimmer of hope that Beijing might swoop in with a fiscal stimulus lifeline in October to reignite growth. In short, the market is hanging in the balance, waiting for the next big move,” noted Stephen Innes, managing partner at SPI Asset Management.
On Wall Street, the S&P 500 rose by 0.7% to surpass the all-time high set last week, while the Dow Jones Industrial Average climbed 431 points, or 1%, to achieve its own record. The Nasdaq composite gained 0.6%.
Cruise line stocks led the market, buoyed by the positive employment data in the US Norwegian Cruise Line saw a significant rise of 10.9% after Citi analysts upgraded its stock, citing strong growth prospects for the cruise industry. Carnival and Royal Caribbean Group also experienced increases of 7% and 5.3%, respectively.
In contrast, Boeing shares fell by 3.4% following the withdrawal of a contract offer that included a 30% wage increase over four years, amidst ongoing labor disputes. Alphabet’s stock also pressured the market, declining by 1.5% as the US Department of Justice considers a potential breakup of its Google business due to antitrust concerns.
Overall, the S&P 500 closed up 40.91 points at 5,792.04, the Dow jumped 431.63 points to 42,512.00, and the Nasdaq composite increased by 108.70 points to 18,291.62.
In the oil market, Brent crude prices rose 57 cents to $77.15 per barrel, while benchmark U.S. crude gained 60 cents to reach $73.84 per barrel. Earlier price fluctuations had been influenced by geopolitical tensions in the Middle East.
In the bond market, the yield on the 10-year Treasury note increased to 4.07% from 4.01% late Tuesday, reflecting traders’ expectations regarding the Federal Reserve’s interest rate policies. The Fed recently initiated rate cuts from a two-decade high to bolster economic growth while managing inflation.
In currency trading, the US dollar rose slightly to 149.33 Japanese yen, while the euro was priced at $1.0943.
As Asia-Pacific markets closed higher on Thursday, investors also analyzed September producer price data from Japan, which showed a 2.8% increase year-on-year, slightly above economists’ expectations.
In China, the central bank announced it had begun accepting applications for a new liquidity tool worth 500 billion yuan ($70.7 billion) aimed at providing easier access to capital for the stock market.
The upcoming briefing by China’s Finance Ministry on October 12 is anticipated to offer additional insights into fiscal policy and economic recovery strategies.
With input from the Associated Press and CNBC.
