Investing.com-- Most Asian stocks rose on Thursday with shares in Japan and South Korea tracking an overnight rebound in U.S. tech stocks, but gains were limited amid fresh tariff threats from U.S. President Donald Trump.
Major U.S. stock indexes closed higher on Wednesday, while their futures edged higher in Asian trading as a cooler-than-expected inflation reading provided respite.
Asia tech stocks rise as Nasdaq jumps after soft CPI
In the U.S., the NASDAQ Composite jumped 1.2% overnight following softer-than-expected February Consumer Price Index (CPI) data.
The CPI indicated a cooling of inflation, with both the overall CPI and core CPI rising only 0.2% month-on-month, below expectations.
The positive sentiment in Asia was largely driven by gains in technology stocks, which benefited from the U.S. market’s performance.
Investors were encouraged by the cooling inflation data, which could influence the Federal Reserve’s monetary policy decisions.
Japan’s Nikkei 225 advanced 1%, while TOPIX gained 0.9%.
SoftBank Group (TYO:9984) shares rose 1.4%, while Tokyo Electron (TYO:8035) stock jumped 1.8%.
South Korea’s KOSPI rose 0.5% with tech heavyweights Samsung Electronics (KS:005930), and SK Hynix Inc (KS:000660) gaining 0.7%, and 0.4%, respectively.
Malaysia’s FTSE Malaysia KLCI index jumped 1.2%, while India’s Nifty 50 Futures edged 0.2% higher.
However, analysts caution that despite the upbeat market movements, underlying concerns such as trade tensions and global economic uncertainties persist, suggesting that market volatility may continue in the near term.
Trump threatens more tariffs on EU, escalates trade tensions
On Wednesday, President Trump threatened additional tariffs on European Union (EU) goods if the EU proceeded with its planned counter-tariffs on U.S. products.
This escalation came shortly after the U.S. implemented a 25% tariff on steel and aluminum imports, a move that has strained relations with key trading partners.
The intensifying trade tensions between major Western economies have raised concerns about potential ripple effects on Asian markets.
Given Asia’s deep integration into global trade networks, any slowdown in Western economies could dampen demand for Asian exports, thereby affecting the region’s growth trajectory.
China’s Shanghai Composite fell 0.4% on Thursday, while the Shanghai Shenzhen CSI 300 index inched 0.2% lower.
Hong Kong’s Hang Seng index ticked down 0.3%.
Australia’s S&P/ASX 200 index was trading 0.1% lower at 7,782.0, on the brink of entering a market correction territory.
The index has fallen 9.7% from its record high of 8,615.20 points reached on Feb. 14.