Investing.com – Most Asian stocks rose on Friday, following strong gains on Wall Street, with Japanese and Australian markets hitting record highs as hopes grow for interest rate cuts in 2024.
Regional markets tracked overnight gains on Wall Street with buying of technology stocks hitting record highs at the close. The rise came after key easing as expected in January, leading to bets that the Federal Reserve will cut interest rates by June.
US stock futures showed moderately positive dynamics in Asian trading.
Japanese shares rise, Nikkei 225 hits record again
Japanese shares were the best performer in Asia, rising 1.7% to a record 39,920. The broader index rose 1.1% and also hit a record high of 2,707.05.
Friday’s gains were driven largely by technology stocks, with shares of Japanese chipmakers and related companies reflecting huge gains over their U.S. peers on excitement about improving prospects thanks to artificial intelligence. Tokyo Electron Ltd. (TYO:) grew by 4.6%, and Advantest company. (TYO:) added 2.6%.
Japanese markets largely shrugged off data showing the contraction was larger than expected in January as the country’s economic activity slowed.
Broader Asian markets also posted positive gains, albeit at a slower pace. The Australian index rose 0.5% to a record high of 7,737.80, after finishing just below a lifetime peak in the previous session.
The rally in Australian shares was driven mainly by rising bets that the Reserve Bank of Australia is done raising interest rates. Markets were also bullish ahead of the fourth-quarter report due next week.
Chinese stocks continue recovery, mixed PMI limits gains
China and indexes rose 0.5% and 0.2% respectively, while gains in technology stocks helped Hong Kong gain 0.5%.
Local stocks have extended their recovery recently, even as official Purchasing Managers’ Index (PMI) data showed business activity in China remained subdued through February.
China contracted for a fifth month in a row, remaining generally subdued even as higher consumer spending during the Lunar New Year helped business.
A separate survey showed China’s manufacturing sector grew slightly more than expected in February.
Among other Asian markets, India index futures are pointing to a positive opening, with the index poised to test record highs after showing India’s outpacing economic growth continued in the December quarter.
In the December quarter, GDP grew by 8.4%, beating expectations, beating expectations of a slowdown and beating the same figure by 7.6%. India has been the fastest growing major economy over the past two years.