Asian Markets rise on SK hynix HBM4 Breakthrough, US Rate Cut Hopes
Asian stock markets broadly advanced Thursday, buoyed by optimism surrounding SK Hynix‘s completion of advancement for HBM4-the next generation of high-bandwidth memory crucial for artificial intelligence-and growing expectations of potential U.S. interest rate cuts. The gains follow a strong performance on Wall Street overnight, despite a slightly hotter-than-expected U.S. inflation report.
SK Hynix shares jumped over 7% to reach their highest level since 2000 as of 9:40 p.m.ET Wednesday, following the announcement of its HBM4 development completion.
Japan’s Nikkei 225 rose 0.58%, having earlier hit a fresh record high, while the Topix added 0.61%. South Korea’s Kospi climbed 0.83%, and the Kosdaq jumped 0.65%.Hong Kong’s Hang Seng index rose 1.64%, and mainland China’s CSI 300 inched 0.19% higher. Australia’s S&P/ASX 200 added 0.41%.
The rally across equities globally is attributed to easing inflation pressures and anticipation of monetary policy adjustments. “momentum and the promise of easier money are the main reasons,” explained Steve Sosnick, chief strategist at Interactive Brokers. “Various central banks, like the ECB and PBOC, have cut rates or used monetary stimulus, and now the Fed is highly likely to join the party.”
U.S. markets closed higher Wednesday,with the Dow Jones Industrial Average finishing up 617.08 points, or 1.36%, at 46,108.00. the S&P 500 ended up 0.85% at 6,587.47, and the Nasdaq Composite advanced 0.72% to 22,043.07. All three major averages reached new intraday all-time highs and closed at record levels.
The latest Consumer Price Index (CPI) reading showed a 0.4% increase for the month, exceeding the 0.3% expected by economists.
