Asian equities ended the week on a strong note, tracking Wall Street higher as investors priced in further US Federal Reserve interest rate cuts.
A combination of rising US jobless claims, inflation data that aligned with expectations, and easing tariff concerns lifted investor sentiment across the region.
Lower bond yields and optimism around artificial intelligence earnings growth also underpinned the rally, helping regional markets head into the weekend with momentum.
China and Hong Kong stocks diverge
China’s Shanghai Composite Index slipped 0.12 percent to 3,870.60, pausing after a recent run of gains.
Pressure mounted after Mexico proposed a 50 percent import tax on Chinese and Asian vehicles, citing the need to protect local employment.
China’s Ministry of Commerce responded, stating, “We hope Mexico will be extremely cautious, and think twice before acting.”
In contrast, Hong Kong equities surged, delivering their strongest weekly performance in six months.
The Hang Seng Index rose 1.2 percent to 26,388.16, up 3.8 percent over the week, marking its highest close since August 2021.
The Hang Seng Tech Index added 1.7 percent.
Alibaba Group Holding jumped 5.4 percent to HK$151.10 and Baidu advanced 8.1 percent to HK$115.10 after reports indicated both companies had begun deploying in-house chips to power their AI models.
Tencent Holdings gained 2.2 percent, while Pop Mart International Group added 1.2 percent.
Japan’s Nikkei reaches record highs
Japanese markets rallied after US Treasury Secretary Scott Bessent and Japanese Finance Minister Katsunobu Kato reaffirmed that their respective policies would not target currency levels.
The Nikkei climbed 0.89 percent to 44,768.12, setting a fresh record.
Chip-related shares drove the gains, with Tokyo Electron surging 5.5 percent and Advantest up 1.8 percent.
SoftBank gained 1.82 percent, extending recent momentum following Oracle’s upbeat guidance on artificial intelligence tied to its $500 billion Stargate program.
Other regional markets
South Korean stocks continued their advance, hitting record highs for a third consecutive day.
The Kospi jumped 1.54 percent to 3,395.54, marking a ninth straight session of gains.
Semiconductor stocks were the main driver, with Samsung Electronics rising 2.7 percent and SK Hynix soaring 7 percent.
SK Square, an investment firm focused on semiconductor and IT assets, surged 8.4 percent.
Australian shares closed higher, led by financial and resource stocks, though falling oil prices weighed on the energy sector. Woodside Energy dropped 3.4 percent and Santos slid 2.2 percent.
The benchmark S&P/ASX 200 rose 0.68 percent to 8,864.90, while the broader All Ordinaries gained 0.63 percent to 9,128.70.
Indian equity benchmarks closed higher on September 12, with the Nifty ending above the 25,100 mark.
The Sensex gained 355.97 points, or 0.44%, to settle at 81,904.70, while the Nifty rose 108.50 points, or 0.43%, to close at 25,114.
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