Asian Shares Extend Gains On Fed Rate Cut Optimism

(RTTNews) - Asian stocks rose on Thursday to extend gains from the previous session amid growing expectations of imminent U.S. Federal Reserve rate cuts. Regional gains, however, remained capped somewhat by rising Sino-U.S. tensions.

China's Shanghai Composite index fluctuated before ending 0.1 percent higher at 3,916.23. Trade tensions kept investors on edge after U.S. Treasury Secretary Scott Bessent slammed Beijing's rare earth export curbs as "China versus the world," vowing that Washington and its allies would "neither be commanded nor controlled."

U.S. Trade Representative Jamieson Greer called China's new rare earth export restrictions "a global supply-chain power grab," while Trump stated that the United States is in a trade war with China.

Hong Kong's Hang Seng index ended marginally lower at 25,888.51 after data showed China's new bank loans rose less than expected in September.

Japanese markets ended sharply higher after the Jaan Innovation Party emerged as a possible coalition partner for the LDP ahead of a parliamentary vote to decide the prime minister expected next week.

Investors shrugged off data that showed Japan's core machinery orders unexpectedly declined month-over-month in August.

The Nikkei average rose 1.27 percent to 48,277. 74 while the broader Topix index closed up 0.62 percent at 3,203.42. Tech stocks surged, with SoftBank Group climbing 8.6 percent and Tokyo Electron adding 4.1 percent.

Renesas Electronics jumped 8.2 percent after reports suggested that the chip maker is working with bankers to explore a sale of its timing division.

Seoul stocks hit a new peak as tech stocks surged on optimism over AI-driven demand. The Kospi average jumped 2.49 percent to 3,748.37. Samsung Electronics climbed 2.8 percent and SK Hynix soared 7.1 percent to record high levels.

Automakers also followed suit on optimism over a possible trade deal with the United States. Hyundai Motor rallied 8.3 percent and its smaller affiliate Kia Corp advanced 7.2 percent.

Australian markets hit a record closing high after data showed unemployment rate rose to a four-year high of 4.5 percent in September, bolstering views of an interest-rate cut next month.

The benchmark S&P/ASX 200 climbed 0.86 percent to 9,068.40, with financials, property and gold miners leading the surge. The broader All Ordinaries index settled 0.83 percent higher at 9,375.90.

Oil & gas producer Santos rose 0.8 percent despite lowering its 2025 production guidance. Wealth manager AMP surged 8.5 percent after a strong quarterly update.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index rose 0.61 percent to 13,389.10, extending gains for a second day running.

The dollar was under pressure in Asian trade after Federal Reserve Chair Jerome Powell highlighted the delicate balance between reducing inflation and supporting the labor market amid economic uncertainties.

Gold extended its record run to trade above $4,230 an ounce. Oil prices rose more than 1 percent after U.S. President Donald Trump said Indian Prime Minister Narendra Modi had pledged his country would stop buying oil from Russia.

Overnight, U.S. stocks fluctuated before ending mostly higher on the back of positive comments on artificial intelligence from ASML Holding and solid quarterly results from financials giants Morgan Stanley and Bank of America.

In economic releases, a report showed New York manufacturing activity has seen a significant turnaround in October. The Federal Reserve's Beige Book showed a stalled job market.

The narrower Dow edged down marginally while the S&P 500 rose 0.4 percent and the tech-heavy Nasdaq Composite added 0.7 percent.