Asian stock markets recorded light advances on Thursday, with momentum led by chipmakers and tech-related stocks even as mainland Chinese shares retreated as top-level U.S.-China talks began in Beijing.
Regional sentiment took some lift from Wall Street, which closed at record highs overnight on the back of strength in technology and semiconductor names, while investors largely set aside concerns about the Iran war and its potential inflationary effects.
S&P 500 futures were up 0.1% in Asian trading, reflecting a cautiously positive tone across the region.
Mainland Chinese shares ease after recent gains
China underperformed much of the region on Thursday. The Shanghai Shenzhen CSI 300 fell 0.8% and the Shanghai Composite lost 0.7% as some investors took profits after both indexes reached multi-year highs earlier in the week - the CSI 300 having climbed to a 4-1/2 year high and the Shanghai Composite to an 11-year high before the pullback.
Those gains came ahead of a widely anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping, slated to cover an array of significant topics including trade tariffs, Taiwan and artificial intelligence. President Trump arrived in Beijing on Wednesday accompanied by a group of senior business executives, a development that had fueled hopes for an improvement in ties between the two largest economies.
Technology helps lift regional benchmarks, but gains remain modest
Across Asia, technology stocks provided the primary support for modest market rises, though traders suggested the recent rally in the sector may be losing steam.
- South Korea’s KOSPI, which has been a standout performer in recent weeks, rose 0.2%, matching a 0.2% advance in Japan’s Nikkei 225.
- Hong Kong’s Hang Seng climbed 0.7%, helped by a 5% jump in Alibaba Group after the company said it will increase spending on artificial intelligence over the next three years - news that helped investors look beyond the company’s disappointing fourth-quarter results.
- Australia’s S&P/ASX 200 slipped 0.1%, marking a fifth consecutive session of declines as traders weighed the risk of an economic and inflationary shock from the Iran war.
- Singapore’s Straits Times index fell 0.2%, and futures for India’s Nifty 50 eased 0.2%.
Alibaba’s results nonetheless contained some signs of early payoff from its AI investment, according to commentary accompanying the stock move, though its fourth-quarter earnings were described as weak.
Market mood and risks
While technology strength helped cap losses in many bourses, markets remained sensitive to potential oil supply disruptions tied to the Iran war, with crude oil prices staying elevated. Earlier U.S. inflation data this week underscored the potential for higher inflation stemming from those supply risks, a backdrop that continued to keep investors cautious.
Overall, trading across the region saw modest gains but reflected a mixture of profit-taking in mainland shares, selective investor focus on tech and AI spending, and ongoing concern about geopolitical shocks to energy markets.