Source: Sharecast
The decision eased trade concerns and added to positive sentiment already buoyed by a rate cut from the Bank of Korea and strong earnings from Nvidia, which reported a 73% year-on-year increase in its data centre revenue.
“Stocks rose in the late hours, fuelled by speculation that positive earnings from Nvidia could bolster the artificial intelligence-driven rally,” said TickMill market strategy partner Patrick Munnelly of late trading on Wall Street overnight.
“Reports indicating that the Trump administration plans to limit the sale of chip design software to China led to a significant drop in shares of Cadence Design Systems and Synopsys.
“Treasury yields decreased after strong demand from investors in a $70bn auction of five-year notes demonstrated ongoing interest in shorter-term securities.”
Munnelly noted that the minutes from the latest Federal Reserve policy meeting revealed a cautious stance, as expected.
“The dollar index increased by 0.3%, while oil prices rose as traders considered potential risks to supplies from Iran and Russia.”
Markets rise across the region, New Zealand in the red
Japan’s Nikkei 225 rose 1.88% to close at 38,432.98, its gains led by Recruit Holdings, which climbed 6.43%.
Nissan Motor rose 5.95%, while Hino Motors added 5.69%.
The broader Topix index gained 1.53% to end at 2,812.02.
In South Korea, the Kospi 100 advanced 1.81% to 2,712.79 after the central bank cut its policy rate to the lowest level since August 2022.
Shares in Mirae Asset Daewoo Securities surged 23.21%, with Lotte Corporation rising 11.74% and Hyundai Heavy Industries up 11.26%.
Chinese markets also rallied - the Shanghai Composite rose 0.7% to 3,363.45, led by sharp gains in Far East Smarter Energy, Sunway, and Shanghai Jiao Yun Group, all of which rose by just over 10%.
The Shenzhen Component added 1.24% to close at 10,127.20.
Hong Kong’s Hang Seng Index climbed 1.35% to 23,573.38, bolstered by an 11.73% jump in CSPC Pharmaceutical Group and strong gains for WuXi Biologics and WuXi AppTec, which rose 10.04% and 6.93% respectively.
Australia’s S&P/ASX 200 edged up 0.15% to 8,409.80.
St Barbara gained 4.92%, Appen rose 4.07%, and Zip Co added 3.08%.
In contrast, New Zealand’s S&P/NZX 50 slipped 0.65% to 12,281.31, weighed down by Ryman Healthcare and Pacific Edge, which both fell about 7.9%, and EBOS Group, which declined 4.24%.
In currency markets, the dollar was last 0.28% stronger on the yen, trading at JPY 145.24, while it weakened 0.25% against the Aussie to AUD 1.5522, and was unchanged against the Kiwi, changing hands at NZD 1.6758.
Oil prices rose, with Brent crude futures last up 1.43% on ICE at $65.83 per barrel, and the NYMEX quote for West Texas Intermediate advancing 1.47% to $62.75.
Bank of Korea cuts rates as expected, Trump tariffs struck down by US court
In economic news, South Korea’s central bank cut its benchmark interest rate by 25 basis points to 2.5% on Thursday, marking its fourth reduction in the current easing cycle and the lowest level since August 2022.
The move, which met expectations, came as the country confronted both ongoing political instability and external economic pressure from US trade policy.
Markets had remained on edge since a failed attempt by former president Yoon Suk Yeol to impose martial law in December - a crisis that was continuing to weigh on investor confidence.
The rate decision coincided with a major legal setback for US president Donald Trump’s trade agenda.
A federal court ruled overnight that Trump overstepped his authority in imposing so-called “reciprocal” tariffs.
The US Court of International Trade found that the International Emergency Economic Powers Act did not permit the president to implement broad-based duties on imports, undermining a key tool in his efforts to reshape global trade terms.
Reporting by Josh White for Sharecast.com.