On Thursday in Manila, Philippines, most Asian stock indexes saw gains, benefiting from an upward trend on Wall Street after a day of volatile trading. U.S. futures remained nearly flat, while oil prices experienced an increase.
Japan’s Nikkei 225 index rose by 0.8%, reaching 48,069.71. This increase was attributed to positive investor sentiment driven by a strong start to the earnings season and the anticipation of possible U.S. rate cuts. However, data released on Thursday indicated that Japan’s core machinery orders, excluding ships and electric power, fell by 0.9% month-on-month in August, which was below market expectations of a 0.4% gain, though it showed significant improvement from a 4.6% drop in July.
In South Korea, the Kospi surged to a record high, gaining 1.8% to 3,722.67. This spike was fueled by buying in technology and auto stocks amid expectations of a tariff agreement between the U.S. and Korea, particularly benefiting companies like Samsung Electronics and automakers Hyundai Motor and Kia Corp.
Chinese markets displayed mixed performances, with Hong Kong’s Hang Seng index decreasing by 0.4% to 25,799.27, while the Shanghai Composite index edged up by 0.1% to 3,916.10. Meanwhile, Australia’s S&P/ASX 200 climbed by 8% to 9,063.70, marking its first breach of the 9,000 level, largely due to gains in gold stocks as miners capitalized on a surge in gold prices, which rose 1.2% to $4,252.30 per ounce. Furthermore, Australia’s jobless rate rose to 4.5% in September, its highest in four years, intensifying expectations that the Reserve Bank may resume rate cuts as early as next month.
India’s BSE Sensex increased by 0.5%, and Taiwan’s Taiex advanced by 1.5%. Back in the U.S. on Wednesday, the S&P 500 rose by 0.4% to 6,671.06 after an erratic trading session. The Nasdaq composite saw a 0.7% increase, closing at 22,670.08 following periods of volatility during the day. Conversely, the Dow Jones Industrial Average lagged, dropping slightly by less than 0.1% to 46,253.31.
Technology stocks played a crucial role in pushing the U.S. market higher, following a better-than-expected profit report from ASML, a major supplier to the semiconductor industry, which expects its revenue for 2025 to surpass last year's figures by 15%. Several prominent banks also contributed to the upward momentum.
As companies face pressure to deliver strong profits after a substantial 35% increase in stock prices since April, investors anticipate that companies will need to demonstrate significant profit growth to justify these gains, which some critics argue have made stock prices excessively high.
The scrutiny surrounding profit reports is heightened as investors seek clarity regarding the U.S. economy’s health, particularly in light of the ongoing government shutdown that is delaying vital economic updates, such as a crucial inflation report that was scheduled for release on Wednesday.
In other financial activities early Thursday, U.S. benchmark crude oil rose by 58 cents to $58.85 per barrel, while Brent crude, the international standard, increased by 55 cents to $62.46 per barrel. The dollar saw a slight uptick against the yen, rising to 151.07 from 151.06. Meanwhile, the euro climbed to $1.1658 from $1.1648.
This overall positive trend in Asian stocks reflects the broader sentiments influenced by U.S. markets, continued expectations for favorable economic policies, and the evolving landscape of global trade relations.
