Precise Investors Editorial Team
Nikkei 225 was the best performer, hitting a record high on a rally in tech and industrial names
Asian stocks rose on Wednesday on strength in tech and persistent optimism over artificial intelligence.
Nikkei 225 was the best performer, hitting a record high on a rally in tech and industrial names. Markets were also encouraged by Tokyo doling out more fiscal measures to help support the economy.
The Nikkei 225 jumped almost 3% to a record high of 68,645.5 points, while the TOPIX hit a high of 3,996.22 points.
Markets were boosted by expectations of more stimulus, after Japan’s cabinet approved a draft supplementary budget of 3.11 trillion yen ($19.5 billion) to help tackle high living costs stemming from the Iran war.
Prime Minister Sanae Takaichi’s government hopes to secure parliamentary approval for the budget by Friday, with the measure being aimed chiefly at continued subsidies on gas and electricity prices.
Takaichi was also set to decide on a consumption tax cut this month.
The prospect of more fiscal support for the economy boosted Japanese stocks, with tech and chip shares leading gains on continued optimism over the AI boom.
ASX 200 gained 0.8% after first-quarter gross domestic product data came in slightly weaker than expected.
While the print showed some resilience in household spending, other factors– chiefly rising fuel costs and weather-related disruptions in mining– weighed on growth in the first quarter.
Still, the print furthered the notion that the Reserve Bank of Australia will keep interest rates on hold in the coming months, amid caution over a further cooling in growth.
The central bank had signalled as much during its last meeting, after it hiked rates by a cumulative 75 basis points so far this year.
Broader Asian markets were largely upbeat. Shanghai Shenzhen CSI 300 and Shanghai Composite indexes added 1.6% and 0.6%, respectively.
Straits Times index advanced 0.7%.
Hang Seng was an exception, slipping nearly 2% after a strong performance in the prior session. Investors were seen locking in some profits in tech heavyweights, which clocked strong gains on Tuesday.
Indian markets continued underperforming, with the Nifty 50 index down 0.7% at the open. Concerns over high oil prices and a lack of AI exposure pushed the Nifty close to a two-month low this week.
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