Investing.com — Asian shares rose on Thursday, with Japanese shares soaring to a new high, as technology stocks surged on optimism about artificial intelligence following strong results from semiconductor giant TSMC.
Regional stocks tracked an overnight rally on Wall Street, which saw stocks soar to record highs as comments from Federal Reserve Chairman Jerome Powell sparked optimism about a soft landing for the U.S. economy and that interest rates would eventually fall this year.
Chairman Powell's comments will put attention on upcoming inflation data, which is likely to influence the Fed's interest rate outlook.
Tech, semiconductor stocks surge on TSMC's tailwind
Regional tech stocks were the best performers on the day, with shares of Taiwan's TSMC (TW:) (NYSE:), the world's largest contract chipmaker, rising in lockstep with the company after it was seen reporting much better-than-expected earnings for the second quarter.
TSMC reported strong June earnings and its shares rose nearly 2% to a record high in Taiwan. The chipmaker has benefited greatly from rising demand for chips from the artificial intelligence industry.
The idea boosted other Asian tech stocks, with tech-heavy indexes rising 1.5% and 0.8%, respectively.
Memory chip manufacturer SK hynix Co., Ltd. South Korean stocks, closely tied to the AI industry, surged more than 3%. South Korean stocks were also largely unaffected by the Bank of Korea meeting for the 12th consecutive time.
Japan's Nikkei Stock Average hits record high
Gains in technology stocks lifted the Japanese market, helping the index rise 0.9% to a record 42,460.0 points. A weaker yen also encouraged overseas buying, benefiting export-related stocks, helping the composite index rise 0.7%.
Weak data is likely to further raise doubts about the health of the Japanese economy and lead the Bank of Japan to remain cautious about further interest rate hikes, a view further strengthened by disappointing data released on Wednesday.
Expectations of a US interest rate cut increased buying appetite for risky stocks, leading to gains across Asian markets.
Australia rose 0.9%, approaching a record high.
China stocks and the China Yuan Index rose 1.1% and 0.7%, respectively, helped by technology stocks, which recovered from four-month lows hit in early July.
Chinese shares were hit by a series of middling economic data that raised concerns about a slowing economic recovery in the country, with attention focused on data due on Friday for further indications from Asia's largest economy.
Indian index futures are showing a positive start and the index is set to recover from the losses recorded in the previous session. The Nifty hit a string of record highs in June and early July and was hit by profit-taking in recent sessions.
