Asian Stocks Climb on Sustained Optimism from China; Tech Follows US Rally

Most Asian stocks experienced gains on Thursday, driven by ongoing optimism surrounding stimulus measures in China. Technology stocks, especially chipmakers, saw significant boosts following strong earnings reports from U.S. peer Micron.

Regional markets largely ignored a weak trading session on Wall Street, where U.S. stock indexes retreated from record highs amid expectations of upcoming signals from the Federal Reserve this week.

However, U.S. futures rose during Asian trading, supported by advancements in technology and chipmaking sectors. Micron Technology Inc. was a standout performer after the memory chip manufacturer reported robust earnings fueled by demand in artificial intelligence.

Investors are keenly awaiting a speech from Federal Reserve Chair Jerome Powell, alongside data on the PCE price index, which the Fed uses as a primary inflation measure.

### Asian Tech Sees Gains as Micron Lifts Chipmakers

Tech-heavy indices recorded the strongest performances in Asia, with South Korea’s KOSPI rising 2.1%. Japan’s Nikkei 225 and TOPIX indexes increased by 2.4% and 1.8%, respectively.

South Korean memory chip producer SK Hynix surged nearly 9%, propelled by Micron’s results. The company also commenced mass production of its most advanced high-bandwidth memory chips, which are critical for AI development.

In Japan, Advantest Corp. and Tokyo Electron Ltd. saw their shares climb by 4.7% and 6.7%, respectively, while Taiwan’s TSMC added 1% to its value.

The positive earnings from Micron, along with a strong outlook, bolstered the belief that the AI trade remains active and that chipmakers will continue to thrive on robust AI-driven demand. This sentiment ignited broad buying across the tech sector, benefiting more than just chipmakers.

### Chinese Stocks Extend Gains on Stimulus Optimism

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes both rose 0.6%, marking a seventh consecutive session of gains as they rebounded from seven-month lows reached earlier in September.

Hong Kong’s Hang Seng index increased by 1.5%, benefiting from strength in major tech stocks. Chinese markets gained momentum this week following the government’s announcement of a series of key stimulus measures, including reduced bank reserve requirements and lower mortgage rates.

The local markets have experienced a surge in bargain buying after lagging behind global counterparts for the past two years due to ongoing concerns over a sluggish Chinese economy. However, analysts suggested that further action is necessary from Beijing to support economic growth, particularly on the fiscal side.

Broader Asian markets also advanced, with Australia’s ASX 200 climbing by 0.9%, nearing record highs amid positive sentiment related to China, which is a vital trading partner for Australia. Futures for India’s Nifty 50 index indicated a strong opening after the index reached a record high surpassing 26,000 points, also overcoming a key resistance level.