Asian stock markets rise, with China leading gains

Nikkei 225 index climbed more than 1%, TOPIX index edged 0.2% higher, Shanghai Composite climbed 1.1%, the Shanghai Shenzhen CSI 300 gained almost 2%, while KOSPI added 0.4%

Most Asian stock markets rose on Thursday, with China leading gains on renewed artificial intelligence optimism, while Nikkei hit new record highs amid political turmoil in Japan.

Traders also kept an eye on U.S. consumer price inflation data due later in the session.

On the U.S. stock market, the S&P 500 and the tech-heavy NASDAQ Composite index hit their second straight record closing highs on Wednesday, boosted by a rally in Oracle shares and other AI-related stocks.

Gains were also aided by expectations of U.S. central bank rate cut next week. That country’s stock index futures traded marginally higher in Asia hours on Thursday.

Nikkei 225 index climbed more than 1% on Thursday to hit a new record high of 44,288.47 points, reaching peaks above 44,000 points for the second time this week.

The move comes after Japanese Prime Minister Shigeru Ishiba stepped down on Sunday following heavy election losses and growing internal party dissent.

This sparked expectations that his successor may pursue more expansionary fiscal and monetary policies.

TOPIX index edged 0.2% higher, remaining just below record highs hit earlier this week.

Shanghai Composite climbed 1.1%, while the Shanghai Shenzhen CSI 300 gained almost 2%.

Chipmaking stocks rallied on renewed optimism over AI demand after software firm Oracle secured multi-billion-dollar AI contracts, sending its shares sharply higher on Wednesday.

Hang Seng index pared sharp losses to trade 0.3% lower, remaining near a four-year high with sharp gains in the past few sessions.

The Hang Seng TECH sub-index, which declined more than 1.3% in early trade, recouped all its losses to trade flat, boosted by chip stocks.

KOSPI added 0.4%, while Straits Times Index was largely unchanged.

S&P/ASX 200 dropped 0.5%, while Nifty 50 opened largely flat.