Asian stocks rise broadly, led by Japan and Hong Kong, as oil holds losses amid demand concerns; global risk appetite improves ahead of US economic data.
Japanese shares advanced, with the Nikkei 225 outperforming regional peers as a weaker yen boosted exporter stocks. The broad risk-on move after US records and AI enthusiasm lifted tech shares. The index gapped higher at the open and sustained gains through the morning session.
The Nikkei benefits from a double tailwind: a weaker yen that boosts the competitiveness of export-oriented firms, and strong global demand for semiconductor and AI-related stocks. Today's rally is amplified by catch-up buying after a local holiday.
Technology and industrials are the top performers, with chipmaking equipment makers and auto stocks leading. The Topix's electrical machinery sub-index jumped over 2% in early trade.
Hong Kong stocks gained, extending their recovery from recent lows as investors bought into beaten-down property and tech shares. Hopes for further Chinese policy stimulus and a steady yuan underpinned sentiment. The Hang Seng breached the 18,000 level intraday.
Markets are looking past recent soft data, pricing in expectations that Beijing will announce additional fiscal and monetary support measures. The property sector rebound suggests investors see value after sharp declines.
Heavyweight tech names like Tencent and Alibaba rose on improving regulatory sentiment, while real estate stocks surged after a top financial news outlet reported possible easing of home purchase restrictions.
WTI crude held below $80, unable to recover from last week's slide triggered by rising US inventories and concerns that China's economic slowdown will cap fuel demand. OPEC+'s intention to gradually return barrels to the market from October added to the supply overhang.
The market is currently focused on the demand side, with China's slowdown outweighing geopolitical risk premium. Rising US production and OPEC+ supply additions are creating a surplus scenario.
Support sits at $75, with a break below exposing the $72 area. Resistance is seen at $80, where the 50-day moving average lies.
Major Asian equity benchmarks advanced in early trading, mirroring a positive lead from Wall Street where the S&P 500 notched a fresh record. Oil prices remained under pressure, hovering near two-week lows as concerns over Chinese demand and rising OPEC+ supply persisted. The risk-on tone supported tech and export-heavy sectors, while currency markets showed muted reaction ahead of key US inflation data.
Asian equities are tracking a strong session on Wall Street where the S&P 500 closed at a record high. Positive sentiment from AI-driven tech gains and expectations of continued US economic growth have lifted global risk appetite, spurring buying in Japan, Hong Kong, and Australia.
Crude oil is under pressure due to worries about weakening demand from China, the world's largest importer, combined with signals that OPEC+ may begin unwinding production cuts. A stronger US dollar earlier in the week also weighed on dollar-denominated commodities.
Major currency pairs are relatively steady. The yen weakened slightly against the dollar on improved risk sentiment, while the Australian and New Zealand dollars edged higher. The dollar index was flat as traders await key US inflation data.