Asian markets are trending mostly higher on Thursday, drawing support from broadly positive cues on Wall Street overnight.
Eased concerns over a potential global trade war, following amicable developments between the US and China, bolstered investor sentiment.
A decline in treasury yields further contributed to the upbeat mood.
Optimism was also fueled by a US report showing a larger-than-expected drop in job openings for December, which has led to renewed hopes for a favourable outlook on interest rates.
Japan’s Nikkei Extends Gains
The Japanese market is trading higher for the third consecutive session. The Nikkei 225 crossed the 39,000 mark, with notable gains among index heavyweights and technology stocks.
As of the morning session close, the Nikkei 225 Index was up 56.56 points, or 0.15%, at 38,888.04, after reaching a high of 39,190.13 earlier in the day. On Wednesday, Japanese shares had posted modest gains.
Among major stocks, SoftBank Group edged up 0.4%, and Fast Retailing, the operator of Uniqlo, gained nearly 1%.
In the automotive sector, Toyota rose over 1%, while Honda fell more than 3% after Nissan’s board rejected a proposed $58 billion merger deal.
In the tech sector, Advantest advanced nearly 3%, and Tokyo Electron rose nearly 1%, while Screen Holdings declined about 1%.
Hong Kong and China stocks climb
Hong Kong stocks climbed on Thursday, tracking gains in the US markets.
The Hang Seng Index rose 0.28% to 20,654.18 by late morning, heading for a fourth straight weekly gain.
The Hang Seng Tech Index saw a stronger uptick, advancing 1%. Meanwhile, China’s major indices, the CSI 300 and the Shanghai Composite, gained around 0.7% each.
Market sentiment improved after the US Postal Service reversed its decision to halt inbound shipments from mainland China and Hong Kong.
The initial halt was prompted by US President Donald Trump’s termination of “de minimis” treatment for China, which had previously allowed small packages valued under $800 to enter the US duty-free.
The reversal provided relief to Chinese retailers and logistics firms, including Alibaba Group Holding, JD.com, and SF Holding.
Other regional markets
The Australian market is also trading significantly higher on Thursday, adding to gains from the last two sessions.
Positive sentiment from Wall Street lifted the benchmark S&P/ASX 200 Index past the 8,500 level, driven by strength in mining and financial stocks.
The S&P/ASX 200 Index rose 95.70 points, or 1.14%, to 8,512.60, after touching an intraday high of 8,513.80 earlier in the session.
South Korea’s Kospi index reclaimed the 2,520 level, supported by institutional buying. It traded 0.67% higher at 2,526.01.
Semiconductor leaders Samsung Electronics and SK Hynix contributed to the upward momentum, rising 0.76% and 1.61%, respectively.
Wall Street stages late comeback on Wednesday
US stocks faced early selling pressure on Wednesday but staged a strong recovery, with the major indices climbing into positive territory by the close.
The Dow Jones Industrial Average gained 317.24 points, or 0.7%, to close at 44,873.28. The S&P 500 added 23.60 points, or 0.4%, finishing at 6,061.48, while the Nasdaq rose 38.31 points, or 0.2%, to end at 19,692.33.
The rebound was supported by a sharp drop in treasury yields. The yield on the benchmark 10-year note fell to its lowest closing level in over a month after the Treasury Department announced that its current auction sizes are sufficient to handle potential fiscal adjustments.
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