Asian shares mostly rise after buying of AI-related shares leads a rally on Wall Street
TOKYO (AP) — Asian shares were mostly higher on Thursday, powered by gains for AI-related stocks including computer chips as regional markets tracked a rally on Wall Street.
U.S. futures were little changed and oil prices were slightly lower.
Japan's benchmark Nikkei 225 advanced 1.6% to 68,601.21.
In South Korea, the Kospi jumped 4%, climbing to 6,844.65, as shares in Samsung Electronics surged 5.4%. Computer chipmaker SK Hynix jumped 7.1%.
Hong Kong's Hang Seng rose 0.3% to 3,967.28, while the Shanghai Composite index added 0.5% to 3,967.65.
In Australia, the S&P/ASX 200 slipped 0.4% to 9,155.80.
On Wednesday, several AI-related companies reported better earnings for the spring than analysts expected, while a report showed inflation across the United States was in line with forecasts for a slight improvement.
The S&P 500 rose 0.3% for its first gain since setting an all-time high on Friday. The Dow Jones Industrial Average dipped less than 0.1%, and the Nasdaq composite climbed 0.5%.
Stocks in the artificial intelligence technology business helped lead the way after strong profit reports raised hopes they can continue to deliver big-enough growth to justify the huge gains their prices have made.
AI stocks recently have been on a roller-coaster ride, surging to records and then coming under pressure on worries that they have shot too high. Investors want to see big spenders on AI prove their investments are yielding enough in profits and productivity to make them worth it. That in turn could lead to sustained demand for chips and other AI infrastructure.
Treasury yields fell after a report showed that U.S. consumers paid prices for gasoline, groceries and other costs of living last month that were 3.4% higher than a year earlier. That’s higher than anyone would like, but it’s not as bad as June’s 3.5% inflation rate.
The moderation in inflation could give the Federal Reserve more leeway to hold off on hikes to interest rates. The Fed’s members are notably split about whether they should have already begun hiking interest rates. But Wednesday’s update on inflation pushed traders to pull back on bets the Fed will hike its main interest rate at its next meeting in September.
In other dealings early Thursday, benchmark U.S. crude dipped slipped 0.3% to $83.06 a barrel. Brent crude, the international standard, fell 0.1% to $88.89 a barrel, returning to where it has traded in recent days.
In currency trading, the U.S. dollar fell to 159.30 Japanese yen from 159.42 yen. The euro cost $1.1526, down slightly from $1.1527.
___
Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama
© Copyright The Associated Press. All rights reserved. The information contained in this news report may not be published, broadcast or otherwise distributed without the prior written authority of The Associated Press.
