7 months ago
Asia stocks rise as tech rout stalls; Australia hits record high on positive PMI
Investing.com-- Most Asian stocks advanced on Thursday as technology shares steadied from a recent rout, with Australian markets reaching record highs on positive business activity data for August.
Chinese shares also advanced, hitting multi-year highs amid growing optimism over an economic recovery. Japanese markets lagged, as data showed a sustained, albeit narrowing contraction in the manufacturing sector.
Regional markets shrugged off middling overnight cues from Wall Street, as sustained selling in tech pressured Wall Street. Markets were also spooked by somewhat hawkish signals from the minutes of the Federal Reserve’s July meeting, which reiterated the bank’s wait-and-see approach on interest rate cuts.
S&P 500 Futures were flat in Asian trade, with focus now squarely on Fed Chair Jerome Powell’s address at the Jackson Hole Symposium this week.
China shares back at multi-year highs, S.Korea rebounds
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 0.6% and 0.4%, respectively. The CSI 300 reached its highest level since October 2025, while the SSEC reclaimed an over nine-year peak.
Chinese markets were on a tear in August amid growing expectations that Beijing will dole out more economic support, especially as economic prints for July painted a dour picture.
South Korea’s KOSPI surged 1%, rebounding sharply from three days of steep losses as local technology stocks appeared to have found a bottom.
The KOSPI hit a 1-½ month low on Wednesday as local tech stocks traced a rout in their global peers, which was sparked by increasing doubts over the profitability of artificial intelligence.
Australia’s ASX 200 hits record high on positive PMIs
Australia’s ASX 200 was among the better performers in Asia on Thursday, rising 1% to breach 9,000 points for the first time ever.
Australian markets were boosted by investors pivoting out of tech and into more economically sensitive sectors such as financials and commodities, which are the two biggest sectors in the ASX.
Positive purchasing managers index data also aided local stocks. Australia’s manufacturing and services sectors both grew at a faster pace in August from the prior month.
Hong Kong flat as Baidu weighs after middling earnings
Hong Kong’s Hang Seng index was flat as losses in internet giant Baidu Inc (HK:9888) largely offset gains in other sectors.
Baidu (NASDAQ:BIDU) fell as much as 3% after logging underwhelming second-quarter earnings, as limited returns from its AI investments only partially offset a sustained decline in its core advertising business.
Among broader Asian markets, Japan’s Nikkei 225 and TOPIX indexes fell around 0.5% each, extending their fall from record highs hit earlier in the week.
PMI data showed Japan’s manufacturing sector shrank again in August, albeit at a smaller-than-expected pace. Service sector growth slowed.
Gift Nifty 50 Futures for India’s Nifty 50 index rose 0.1%, pointing to a mildly positive open for the index after it cleared 25,000 points for the first time in nearly a month on Wednesday.
Singapore’s Straits Times index was flat.
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