Asian stocks surged following a global rally driven by robust performances in major tech stocks, pushing markets to new highs ahead of the release of US inflation data later on Thursday.
The bullish sentiment extended to equities in Japan, Australia, and China, buoyed by a strong showing on Wall Street the previous day. Taiwanese Semiconductor Manufacturing Co. hit record highs after reporting its fastest sales growth since 2022, fueled by demand for advanced chips from Nvidia Corp. and Apple Inc. Sony Group Corp., Tencent Holdings Ltd., and Korean chipmaker SK Hynix Inc. also contributed significantly to the regional market’s gains.
In the US, both the S&P 500 and Nasdaq 100 notched over 1% gains, setting new record highs, driven by positive earnings expectations from Nvidia and Apple. Apple indicated plans to increase device shipments by 10% following a challenging 2023, while the S&P 500 marked its longest winning streak since November.
Despite a flurry of economic data expected this week, including Federal Reserve Chair Powell’s testimony and inflation reports, markets remained stable. Analysts anticipate the core Consumer Price Index (CPI), which excludes volatile food and energy prices, to show a modest 0.2% increase for June, reinforcing expectations of measured inflation.
In Asia, investors are closely monitoring regulatory developments in China aimed at tightening rules on short selling and high-frequency trades, amidst a cautious outlook ahead of the country’s Third Plenum next week.
Elsewhere, the Bank of Korea opted to keep its benchmark interest rate unchanged, awaiting further signs of cooling inflation. Economic indicators scheduled for release include consumer confidence data in Thailand and monetary policy decisions in Malaysia, alongside key financial metrics from China.
Oil prices climbed for a second consecutive day, supported by signs of increasing demand and a positive market sentiment. Gold also extended gains for a third day.
Looking ahead, key events include US CPI data and initial jobless claims, along with earnings reports from major banks such as Citigroup, JPMorgan, and Wells Fargo.
