Asian markets close mostly higher, extending rally despite AI and weak U.S. data

Indices

The Nikkei 225 (Japan) remained closed due to a national holiday, but notably, in the previous session, it had reached a record high, underscoring robust momentum following decisive political developments. The Hang Seng Index (Hong Kong) posted a gain, rising 0.3% to close at 27.26K, continuing its recent upward momentum. The Shanghai Composite Index (China) edged higher by 0.1% to 4.13K, indicating ongoing stability in the Chinese market. The KOSPI (South Korea) led regional gains, climbing 1% to close at 5.35K—a new peak—propelled by strong performance in technology shares. These movements collectively suggest that regional indices are generating potential buy signals, particularly in technology leadership, as investors respond to favorable macroeconomic cues.

Stocks

Within the Hang Seng Index, technology giants such as Alibaba (9988.HK) and Tencent Holdings (0700.HK) were key drivers of the day’s gains, reflecting sector-wide strength and sustained investor confidence. The KOSPI’s advance was powered by technology companies, notably SK Hynix (000660.KS), which announced new AI memory chip developments, fueling sector optimism. In China, government support for the property sector and improved liquidity conditions provided a supportive backdrop, though no specific stock leaders were identified. The robust showing by technology stocks across the region highlights a tactical opportunity for traders to focus on growth-oriented names, particularly those exposed to artificial intelligence and digital transformation themes.

Economic News

Asian markets reacted positively to a weak U.S. retail sales report, which heightened expectations for possible interest rate cuts by the Federal Reserve. This development contributed to improved risk sentiment and was a catalyst for gains across major Asian indices. In China, additional government measures to stabilize the property market and ensure liquidity further bolstered local confidence, while in Japan, recent political developments and the prospect of economic reforms continued to underpin market optimism from the previous trading session.

Economic Events

No major economic events were reported in Asian markets for today. However, investors are closely monitoring the upcoming U.S. jobs report, recognizing its potential to shift global market sentiment and influence central bank policy expectations. The anticipation surrounding this event may lead to increased volatility and trading opportunities in the short term, especially in sectors sensitive to interest rate outlooks.

Market Sentiment

Market sentiment across Asia is characterized by cautious optimism. The Hang Seng Index’s modest gains indicate growing confidence amid ongoing global uncertainties, while the Shanghai Composite’s steady performance reflects stability amidst domestic policy support. The KOSPI’s strong advance underscores heightened risk appetite, especially in the technology sector, driven by enthusiasm for artificial intelligence and future growth prospects. Collectively, these trends point toward a constructive market environment, though traders are advised to remain vigilant for potential shifts stemming from upcoming global economic data releases.

Please note that the analysis is for informational purposes only and does not constitute financial advice. Users should conduct their own research.