NewzTOKYO (AP) — Asian shares mostly rose in early Thursday trading, as global market optimism continued on prospects for AI stocks and the semiconductor sector. Japan’s benchmark Nikkei 225 jumped 1.6% in early trading to 68,609.92. Australia’s S&P/ASX 200 slipped 0.6% to 9,155.80.
South Korea’s Kospi surged 3.9% to 6,835.55. Hong Kong’s Hang Seng edged up nearly 0.1% to 25,453.45, while the Shanghai Composite gained 0.4% to 3,961.82. Asian regional sentiments received a boost from the overnight performance of Wall Street, which finished just shy of a record Wednesday.
Several AI stocks reported better growth for the spring than analysts expected, while a report showed inflation across the United States was slightly less bad last month. The S&P 500 rose 0.3% for its first gain since setting its all-time high on Friday. The Dow Jones Industrial Average dipped 21 points, or less than 0.1%, and the Nasdaq composite climbed 0.5%.
Stocks in the artificial intelligence technology business helped lead the way after strong profit reports bolstered hopes they can continue to deliver big-enough growth to justify the huge gains their prices have made. It’s a return to strength for AI stocks, which have been veering on a roller-coaster ride. After surging to records, AI stocks came under pressure on worries that they shot too high.
Investors wanted to see big spenders on AI prove their investments are yielding enough in profits and productivity to make them worth it. That in turn could lead to continued demand for chips and other AI infrastructure. Treasury yields fell after a report showed that U.S.
consumers paid prices for gasoline, groceries and other costs of living last month that were 3.4% higher than a year earlier. That’s higher than anyone would like, but it’s not as bad as June’s 3.5% inflation rate. The deceleration could give the Federal Reserve more leeway to hold off on hikes to interest rates.
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