Asian shares surged on Thursday, following a remarkable rally on Wall Street, with Japan’s Nikkei 225 index reaching a new milestone of over 42,000 for the first time. The U.S. stock market also hit new all-time highs on Wednesday, driven by big technology companies benefiting from the AI frenzy.
The optimism in the markets is fueled by hopes for interest rate cuts, pushing stocks higher. The Nikkei 225 rose 0.8% to 42,179.84, surpassing its previous records. The Hang Seng in Hong Kong and the Shanghai Composite index in China also saw gains, along with the Kospi in Seoul and Australia’s S&P/ASX 200.
Taiwan Semiconductor Manufacturing Corp. (TSMC) saw a significant jump in its U.S.-listed shares after reporting a 33% increase in revenue in June. The company’s chips, used by Nvidia and others in the AI sector, have been driving the technology boom.
Nvidia, in particular, has seen a remarkable 172.5% gain this year, with its shares rising 2.7% on Wednesday. The S&P 500 and Nasdaq composite also reached new highs, with big technology companies leading the way.
The Federal Reserve’s Chair, Jerome Powell, reiterated the possibility of rate cuts later this year, depending on economic data. The U.S. government is set to release the latest inflation update, which will play a crucial role in determining the timing of rate cuts.
The upcoming earnings reporting season will provide further insight into the market’s performance, with companies like Delta Air Lines and JPMorgan Chase expected to deliver strong growth.
In the commodities market, U.S. benchmark crude oil and Brent crude both saw gains, while the U.S. dollar weakened against the Japanese yen and the euro.
Overall, the market’s optimism and record-breaking performances reflect the ongoing AI frenzy and hopes for economic stimulus measures to sustain the rally.
