Asian markets experienced a notable rise on Thursday, buoyed by record gains on Wall Street, despite the ongoing U.S. government shutdown. The surge in technology shares was particularly driven by a strategic partnership between South Korean tech giants and OpenAI, which is expected to increase demand for computer chips.
South Korea’s Kospi index saw a significant increase of 2.9%, closing at 3,555.63. The announcement of Samsung Electronics and SK Hynix collaborating with OpenAI to supply memory chips for its Stargate data hubs has reaffirmed expectations for robust export growth in the region. According to the Nomura Group, higher chip prices are anticipated to mitigate tariff impacts on sectors outside of technology, such as automotive. Following this news, shares of Samsung jumped by 4.6%, while SK Hynix saw an impressive 10.8% increase. The Taiwanese chip manufacturer TSMC also contributed positively, with its shares rising by 3.3%, helping the Taiex index gain 1.7%.
In Japan, the Nikkei 225 added 0.3%, reaching 44,675.96, propelled by gains in the tech sector. Hong Kong’s Hang Seng index increased by 1.3% to 27,206.18, although markets in mainland China remained closed for a national holiday. Meanwhile, Australia’s S&P/ASX 200 rose by 1% to 8,937.10, bolstered by strong performance in gold mining stocks. In India, the BSE Sensex climbed 0.9% following the Reserve Bank of India’s decision to maintain its benchmark interest rate.
On U.S. markets, stocks reached new heights on Wednesday, with the S&P 500 gaining 0.3% to close at 6,711.20, exceeding its previous all-time high. The Dow Jones Industrial Average rose by 0.1% to end at 46,441.10, while the Nasdaq composite increased by 0.4% to 22,755.16. Market analysts noted that investors appear to thrive on turning crises into opportunities for higher prices.
However, labor market signals are mixed as a recent survey indicated employers outside the government cut approximately 32,000 jobs in September. A significant revision of August’s employment numbers showed a loss of 3,000 jobs—an adjustment from an earlier reported gain. Generally, traders await a comprehensive U.S. government jobs report for more reliable insights, but the recent government shutdown has raised concerns about potential delays in critical economic data releases.
Wall Street hopes for a slowing job market that could persuade the Federal Reserve to implement further interest rate cuts. The delicate balancing act between avoiding a recession while stimulating economic growth heightens market uncertainty; any delays in key economic reports may exacerbate concerns regarding future Federal Reserve actions.
In commodities, U.S. benchmark crude oil saw a modest increase of 30 cents, settling at $62.08 per barrel, with Brent crude similarly rising to $65.65 per barrel. The U.S. dollar strengthened against the Japanese yen, rising to 147.13 from 147.08. Meanwhile, gold experienced a slight retreat after recent gains, down $6.80 to $3,890.70 per ounce, although it has seen a significant rise of over 37% year-on-year.
