Commercial and residential buildings light up at dawn in Seoul, South Korea, Saturday, Oct. 21, 2023. South Korea is preparing a 75.9 trillion won ($56.97 billion) financial support program for companies boosting investment in key sectors and small and medium-sized businesses struggling with the effects of high interest rates.
Bloomberg | Bloomberg | Getty Images
Japan’s Nikkei stock average surged to a new high on Thursday, surpassing 42,000 points for the first time, as other Asia-Pacific markets rose on the back of gains in big U.S. technology companies and growing confidence that the Federal Reserve will cut interest rates.
The Nikkei Stock Average rose 1.37% at the open, while the Tokyo Stock Price Index also rose 1.17% to hit a new high.
Semiconductor stocks were among the biggest gainers of the U.S. trading session. U.S.-listed shares of Taiwan Semiconductor Manufacturing Co. (TSMC) rose 3.5% after the company reported sales for the April-June period that beat Wall Street expectations.
Fellow chip makers Qualcomm Inc. rose 0.8% and Broadcom Inc. added about 0.7%. Artificial intelligence darling Nvidia Inc. rose 2.7%.
In Asia, investors are watching to see optimism spread to the region’s tech stocks, particularly in Japan, where semiconductor-related companies have helped propel the Nikkei average to a record high.
Economic data due out of the region on Thursday include Japan’s machinery orders for May and the Bank of Korea’s interest rate decision.
| Ticker | company | name | price | change | %change |
|---|---|---|---|---|---|
| .N225 | Nikkei Stock Average | Nikkei | 41,831.99 | united nations | united nations |
| .HSI | Hang Seng Index | HSI | 17,471.67 | united nations | united nations |
| .AXJO | S&P/ASX 200 | ASX 200 | 7,816.80 | united nations | united nations |
| .SSEC | Shanghai | Shanghai | 2,939.36 | united nations | united nations |
| .KS11 | KOSPI Index | Korea Composite Stock Price Index | 2,867.99 | united nations | united nations |
| .FTFCNBCA | CNBC 100 Asia IDX | CNBC 100 | 10,258.02 | +62.11 | +0.61% |
South Korea’s KOSPI rose 0.96% ahead of the Bank of Korea decision, while the KOSDAQ added 0.22%.
Australia’s S&P/ASX 200 rose 0.85%.
Hong Kong Hang Seng Index futures were at 17,615, above the HSI’s last close of 17,471.67.
All three major stock indexes in the US rose overnight, with the S&P 500 and Nasdaq Composite up 1.02% and 1.18%, respectively.
The gains helped the S&P surpass the 5,600 level for the first time, marking its 37th all-time high of 2024. The Nasdaq recorded its 27th all-time high this year.
The Dow Jones Industrial Average rose 1.09%.
Expectations of interest rate cuts are also boosting stock prices, with Dow Jones forecasting inflation to be 3.1% year-on-year in June, lower than the 3.3% increase in May.
Core inflation, which excludes more volatile food and energy prices, is expected to rise 3.4% from June last year. The CPI rose 3.3% year-on-year in May.
—CNBC’s Brian Evans, Samantha Sabin and Jesse Pound contributed to this report.
