Asian Shares Rise Amid AI Enthusiasm

(RTTNews) - Asian stocks ended mostly higher on Thursday, with chipmaking and related stocks leading the surge on optimism over artificial intelligence.

Dovish-leaning minutes from the Federal Reserve's September meeting also fueled hopes for more Fed rate cuts ahead of an upcoming address by Fed Chair Jerome Powell later in the day.

Chinese markets rallied as trading resumed following the National Day holidays. The benchmark Shanghai Composite index surged 1.32 percent to 3,933.97 as renewed optimism for artificial intelligence offset reports of weak consumer spending during the eight-day holiday week.

Hong Kong's Hang Seng ended down 0.29 percent at 26,752.59, with Sino-U.S. trade tensions in focus after the Trump Administration intensified its crackdown on Chinese technology companies and China tightened its rules on the export of rare earths.

Shares of HSBC Holdings slumped 6 percent after the lender proposed taking its troubled Hong Kong subsidiary Hang Seng Bank Ltd. Private.

Japanese markets soared to reach new record highs as the yen held steady after touching its weakest level against the dollar since February.

The Nikkei average jumped 1.77 percent to 48,580.44, with tech stocks leading the way. The broader Topix index settled 0.68 percent higher at 3,257.77.

Tech investor SoftBank Group soared 11.4 percent and robot manufacturer Yaskawa Electric climbed 9.5 percent after the formed announced a deal to the robotics division of Swiss engineering firm ABB.

South Korean markets remained shut for a holiday. Australian stocks eked out modest gains to snap a three-day decline.

The benchmark S&P/ASX 200 edged up by 0.25 percent to 8,969.80 as stronger metals prices and a wave of rare earths deals boosted heavyweight mining stocks.

Technology stocks also followed their U.S. peers higher despite concerns of an artificial intelligence bubble. The broader All Ordinaries index closed up 0.34 percent at 9,276.60.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index finished marginally higher at 13,570.86.

The dollar index held steady in Asian trade after posting gains for three consecutive days. Gold edged lower on profit taking after hitting a new record high of $4,059.34 an ounce.

Oil prices were up slightly in choppy trade after U.S. President Donald Trump said Israel and Hamas have agreed to the first phase of his Gaza peace deal.

Overnight, U.S. stocks ended broadly higher after reports suggested that Nvidia will invest $2 billion into a $20 billion equity and debt funding round for Elon Musk's AI venture.

On the economic front, data showed home loan applications in the U.S. declined for a second week in a row, but at a slower pace.

The minutes covering the Fed's Sept. 16-17 policy meeting signaled more rate cuts could be in play for the rest of 2025 despite steep divisions within the central bank about the outlook for jobs and inflation.

The tech-heavy Nasdaq Composite and the S&P 500 gained 1.1 percent and 0.6 percent, respectively to reach new record closing highs while the narrower Dow ended marginally lower.