Asian stocks buoyed by tech; Japan coasts past Q4 recession
Investing.com-- Most Asian stocks rose on Thursday as major technology shares tracked a rebound in their U.S. peers, while Japan’s Nikkei 225 neared record highs even as the economy unexpectedly entered a recession.
But while Japanese markets shone, gains across broader Asia were a lot more subdued, as risk aversion still remained in play amid waning bets on early interest rate cuts by the Federal Reserve.
Regional markets took a positive lead-in from Wall Street, with U.S. stock benchmarks closing higher overnight as persistent hype over artificial intelligence and some strong earnings drove gains in heavyweight tech shares.
S&P 500, Nasdaq 100 and Dow Jones futures edged lower in Asian trade. Analysts said that U.S. stocks were likely due for more losses after Tuesday’s hotter-than-expected inflation data.
The Nikkei 225 rose 0.7% to 37,982.50 points- a 34-year high. The index was also within spitting distance of a record-high 38,915 points last seen in 1989.
Gains in the Nikkei were fueled largely by heavyweight tech stocks, with chipmakers and chip-adjacent stocks logging strong gains on AI hype. Tech investor SoftBank Group Corp. (TYO:9984) rose 2.4% to a near three-year high, while chip testing equipment maker Advantest Corp. (TYO:6857) rose 1.6% and Tokyo Electron Ltd. (TYO:8035)- Japan’s most valuable chipmaker- added nearly 4%.
The broader TOPIX fell 0.1%.
Data released earlier in the day showed Japan’s gross domestic product unexpectedly shrank in the December quarter, as private consumption was battered by high inflation and a weak yen. The reading showed Japan entering a technical recession, after logging two straight quarters of GDP declines.
But the recession fueled bets that the Bank of Japan will
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