Asian Shares Bounce Back On Strong US Data

(RTTNews) - Asian markets rose on Thursday after two days of declines. Traders pondered the outlook for interest rates after the release of strong U.S. economic data and the announcement of 2025 election results, which were good to Democrats with wins in several major races, including governor's races in two states.

Meanwhile, after conservative justices posed tough questions for the Trump administration, contracts tied to whether the U.S. Supreme Court would rule in favor of Trump's tariffs slipped to around 30 percent from nearly 50 percent before Wednesday's hearing.

A ruling is expected before the end of the year. Analysts said that no matter how the Supreme Court's ruling eventually looks, tariffs are here to stay, and the Trump administration will use other tools to impose duties on countries that discriminate against U.S. commerce.

China's Shanghai Composite index jumped 0.97 percent to 4,007.76 after the country raised $4 billion at rates equivalent to U.S. Treasury yields in its return to the international bond market.

Hong Kong's Hang Seng index rallied 2.12 percent to 26,485.90 as buyers stepped in after a brief retreat in technology shares.

Japanese markets rose sharply as signs of a resilient U.S. labor market fueled risk appetite. Investors also digested data that showed Japan's services sector continued its growth for the seventh consecutive month in October.

The Nikkei average climbed 1.34 percent to 50,883.68 while the broader Topix index settled 1.38 percent higher at 3,313.45.

Chip-related Advantest surged 3.2 percent and technology investor SoftBank Group advanced 2.9 percent. Konica Minolta soared 15.5 percent after posting turnaround results.

Seoul stocks rebounded after having suffered steep losses in the previous session on concerns surrounding an AI bubble.

The Kospi average rose 0.55 percent to 4,026.45 following a nearly 3 percent fall the previous day. Financial and utility firms topped the gainers list, while cosmetics and shipbuilding companies lost ground.

Australian markets eked out modest gains to snap a two-day losing streak. The benchmark S&P/ASX 200 rose 0.30 percent to 8,828.30 as a rise in gold prices boosted mining stocks. The broader All Ordinaries index closed up 0.30 percent at 9,098.60.

James Hardie Industries plunged 12.7 percent after one of its U.S. building-materials peers issued a bearish outlook on demand.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index dropped 0.32 percent to 13,576.81 after briefly touching a new record high earlier in the session.

Gold climbed above $4,000 per ounce in Asian trade as the dollar eased from a four-month high hit in the previous session. Oil prices rose slightly as fears of oversupply eased.

Overnight, U.S. stocks fluctuated before closing higher as upbeat earnings and solid economic data outweighed jitters over inflated tech stock valuations.

ADP said private sector employment climbed by 42,000 jobs in October after slipping by a revised 29,000 jobs in September.

Economists had expected private sector employment to rise by 25,000 jobs compared to the loss of 32,000 jobs originally reported for the previous month.

The Institute for Supply Management released a report that showed U.S. service sector activity expanded at the fastest pace in eight months amid a surge in new orders.

The tech-heavy Nasdaq Composite surged 0.7 percent, boosted by a rebound in artificial intelligence-linked stocks, including Advanced Micro Devices. The Dow gained half a percent and the S&P 500 rose 0.4 percent.