Asia-Pacific markets rose on Thursday, with key benchmarks in Japan and South Korea setting fresh records, as signs of progress in U.S. trade negotiations and strong corporate earnings lifted investor sentiment.
At 11:45 am AEST (1:45 am GMT), Australia’s S&P/ASX 200 edged up 3.8 points or 0.04%, while Japan’s Nikkei 225 surged 1.8% to a new record. South Korea’s Kospi 200 gained 0.8%, touching intraday highs.
Optimism was fuelled by developments on the global trade front. Investor sentiment was buoyed after the U.S. finalised a trade deal with Japan featuring 15% reciprocal tariffs, and further signs emerged of progress toward a similar agreement with the European Union.
Added to the positive tone, South Korea’s economy avoided a technical recession. Preliminary data showed second-quarter GDP grew 0.6% from the previous quarter, beating forecasts of 0.5% and rebounding from a 0.2% contraction in Q1.
On an annual basis, GDP rose 0.5%, surpassing expectations of 0.4%.
In Japan, private sector activity expanded in July, led by the services sector. The Flash Japan Services PMI rose to 53.5 from 51.7 in June. However, the Flash Manufacturing PMI slipped to 48.8 from 50.1, pointing to a continued contraction in factory output.
Australia also recorded stronger business activity. The Flash Services PMI climbed to 53.8 in July from 51.8 in June, while the Flash Manufacturing PMI increased to 51.6 from 50.6, signalling a pick-up in both manufacturing and services at the start of Q3.
In corporate news, chipmaker and NVIDIA supplier SK Hynix posted record second-quarter earnings and revenue, surpassing estimates.
The company reported revenue of 22.23 trillion won (A$24.51 billion), beating expectations of 20.56 trillion won, and operating profit of 9.21 trillion won, ahead of expectations for 9 trillion won.
Meanwhile, the U.S. markets closed at record highs overnight. The Dow Jones Industrial Average rose 1.1%, the S&P 500 added 0.8%, and the Nasdaq Composite gained 0.6%.
In commodities, Brent crude dipped 0.1% to US$68.51 a barrel, while spot gold climbed 1.3% to US$3,387.45 per ounce.
Meanwhile, Chinese equities were little changed but held near multi-month highs. The Shanghai Composite ended flat at 3,582.3, and the CSI 300 at 4,119.8. Hong Kong’s Hang Seng Index rose 1.6%, closing at a four-year high of 25,538.1. India’s BSE Sensex climbed 0.7% to 82,726.6.
In Europe, the major benchmarks also advanced. The UK’s FTSE 100 added 0.1% to reach a record 9,061.5, Germany’s DAX rose 0.9% to 24,240.8, and France’s CAC 40 gained 1.4% to 7,850.4.
