Most Asian stocks were higher on Thursday as the broader tech sector rose tracking Wall Street gains, though escalating U.S.-China trade tensions tempered overall optimism.
U.S. stock index futures edged higher in Asian trade after Wall Street saw gains in tech stocks after NVIDIA (NASDAQ:NVDA) forecasted solid capital spending on artificial intelligence.
Tracking their peers, heavyweight Asian tech stocks were also on the rise, leading to broad-based gains in the region.
Regional tech stocks jump on AI optimism
Despite the imposition of 10% tariffs by the Donald Trump administration on Chinese goods, China's AI sector, led by companies like DeepSeek, has demonstrated resilience, bolstering investor confidence.
The enthusiasm surrounding DeepSeek has been a key factor in offsetting concerns related to the ongoing trade tensions between the U.S. and China.
As a result, China’s Shanghai Composite rose 0.8% on Thursday, while the Shanghai Shenzhen CSI 300 index gained 0.7%. Hong Kong’s Hang Seng index advanced 0.4%.
Hong Kong-listed Semiconductor Manufacturing International Corp (HK:0981) (SMC) shares hit their record high, while Sunny Optical (OTC:SNPTF) Technology (HK:2382) stock jumped 6.1%.
In Tokyo, the Nikkei 225 gained 0.3%. Semiconductor giant Tokyo Electron (TYO:8035) saw its shares climb 1.8%, while Sony Corp (TYO:6758) added 1.2%.
Renesas Electronics Corp (TYO:6723) surged 12% following robust earnings for the December quarter.
South Korea's KOSPI index rose 0.5%, with Samsung Electronics (KS:005930) and SK Hynix Inc (KS:000660) adding 1.1% and 2.7%, respectively.
US-China tariff concerns persist, limiting gains
However, the upside was limited as investors remained cautious ahead of the implementation of China's retaliatory tariffs on U.S. imports, set to take effect next week.
The ongoing trade tensions have prompted global investors to adopt a more cautious stance toward riskier assets.
Singapore's Straits Times Index gained 0.4%, buoyed by strong performances in the financial and technology sectors.
Singapore Exchange Ltd (SGX:SGXL) reported a 27% rise in its half-yearly profit on Thursday. The bourse operator’s stock rose nearly 1%.
Elsewhere, India's Nifty 50 Futures were largely muted on Thursday.
Australia's S&P/ASX 200 index advanced 0.7%, with technology and mining stocks leading gains.
