- Nikkei 225 hits a record high, leading Asia-Pacific markets.
- Hong Kong tech stocks surge on strong earnings reports, especially Tencent Music.
- U.S. inflation data fuels hopes of a Federal Reserve rate cut, boosting investor sentiment.
Asia-Pacific stocks ended the session on a broadly positive note Wednesday, following gains on Wall Street. Investors responded to U.S. inflation data that has raised expectations the Federal Reserve could lower interest rates next month, boosting sentiment across the region.
Japan’s Nikkei 225 led the rally, closing at a record high of 43,274.67, up 1.3%, while the Topix index rose 0.83% to 3,091.91. South Korea’s Kospi gained 1.08% to 3,224.37, and the Kosdaq small-cap index advanced 0.86% to 814.1. In mainland China, the CSI 300 rose 0.79% to 4,176.58, while the Shanghai Composite climbed to its highest intraday level since December 2021. Australia’s S&P/ASX 200 bucked the trend, falling 0.6% to 8,827.10.
Tech Stocks Drive Hong Kong Rally
Hong Kong’s Hang Seng Tech Index surged more than 2%, fueled by strong earnings and robust growth in key technology stocks. Tencent Music Entertainment led the charge with a 16% jump after surpassing second-quarter revenue and profit estimates. Sunny Optical Technology Group gained over 5%, Bilibili rose 4.77%, and Alibaba traded 4.46% higher. Analysts noted that Tencent Music’s growth in online subscriptions, advertising, and concerts underpinned its strong performance.
Record Highs Highlight Optimism in Japan
Japan’s market gains were driven by both policy optimism and corporate performance. Companies like Yokohama Rubber (+10%) and Renesas Electronics (+7%) posted strong gains, reflecting investor confidence in Japan’s corporate governance reforms and measures to attract foreign investment. Fitch Solutions analysts highlighted that Japan’s efforts to escape deflation and improve capital markets are supporting sustained equity growth.
Also Read: BRICS Coalition Explained: How Five Nations Are Rewriting Global Economics
Investor Sentiment Strengthens
Overall, the Asia-Pacific rally reflects renewed investor confidence amid global economic cues, particularly U.S. monetary policy expectations. While Australia’s market dipped, technology and blue-chip stocks across Japan, South Korea, and Hong Kong drove the broader positive sentiment.
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