Asian stock markets experienced considerable gains on Thursday, propelled by U.S. memory chip maker Micron's optimistic first-quarter revenue forecast and China's politburo's vow to enhance fiscal support for the struggling property sector.
Investor confidence was further bolstered by the Organization for Economic Co-operation and Development (OECD), which modestly increased its global economic growth forecast for 2024 and anticipated additional Federal Reserve rate cuts next year.
The dollar index recovered in Asian trading as attention shifted to the imminent release of U.S. GDP data and a speech by Fed Chair Jerome Powell.
Gold prices remained near record levels after several Federal Reserve officials indicated the possibility of another significant rate cut.
Oil prices continued their decline, falling over 2 percent in Asian trading, following a Financial Times report that Saudi Arabia, the de facto leader of OPEC, may increase oil production to regain market share.
China's Shanghai Composite Index surged 3.61 percent to 3,000.95, its highest closing level since June, marking a seventh consecutive winning session. This rise was fueled by the politburo's promise to enhance counter-cyclical fiscal and monetary policies to meet annual economic and social development targets.
A Bloomberg News report, citing unnamed sources, suggested that China might inject up to 1 trillion yuan ($142.48 billion) into its major state banks to support the faltering economy.
Hong Kong's tech-heavy Hang Seng Index soared 4.16 percent to 19,924.58, boosted by Micron Technology Inc.'s after-hours rally.
In Japan, markets rallied as a weaker yen benefited export-oriented stocks. The Nikkei average climbed 2.79 percent to 38,925.63, while the broader Topix index rose 2.66 percent to 2,721.12. Automakers Honda Motor and Toyota each surged approximately 3 percent, with chipmakers Tokyo Electron and Advantest rising 8 percent and 5.4 percent, respectively.
The yen dropped to a three-week low against the dollar after the minutes from the Bank of Japan's July policy meeting revealed a divide among board members regarding future interest rate paths.
In Seoul, stocks advanced, with the Kospi average increasing 2.90 percent to 2,671.57, driven by China's heightened economic support. Semiconductor maker SK Hynix soared 9.4 percent following the announcement of its commencement of volume production of a 12-layer memory chip known as HBM3E, while heavyweight Samsung Electronics jumped 4 percent.
Australian markets also posted significant gains, led by retailers and tech companies. The benchmark S&P/ASX 200 rose 0.95 percent to 8,203.70, while the broader All Ordinaries index climbed 1.07 percent to 8,462.80.
Across the Tasman Sea, New Zealand's benchmark S&P/NZX-50 index rallied 2.18 percent to 12,491.58.
Conversely, U.S. stocks closed lower overnight as investors deliberated over the U.S. economy's health and the likelihood of another substantial interest rate cut at the Fed's next meeting in November. Housing data presented a mixed economic picture, with new home sales dropping sharply in August, while mortgage applications surged to their highest level since 2022.
The Dow Jones Industrial Average fell 0.7 percent, ending a four-session winning streak. The S&P 500 declined 0.2 percent, while the tech-heavy Nasdaq Composite finished marginally higher.
