SYDNEY — Sharemarkets in Japan, Taiwan and South Korea set records on Thursday, boosted by technology stocks, while investors wagered US inflation data would be benign enough to ensure a rate cut next week and perhaps two more by year-end.
European stocks, however, braced for a more subdued open, with EUROSTOXX 50 futures little changed ahead of a rate decision from the European Central Bank. The ECB is widely expected to hold rates steady but the focus is on whether it will keep the door ajar for further policy easing.
Meanwhile, oil prices trimmed overnight gains after Poland downed suspected Russian drones in its airspace and as the US pushed the EU to impose new sanctions on buyers of Russian oil. Gold also slipped further away from all-time highs.
Michael Brown, a senior research strategist at Pepperstone, said for stocks, the path of least resistance is clearly higher.
“The list of bullish catalysts is still piling up – solid economic growth, strong earnings growth & guidance, corporate buybacks gathering pace, calmer tones prevailing on trade and optimism around the AI theme having returned with a vengeance,” Brown said.
Japan’s Nikke gained 1.2 percent to hit a record as tech, energy and utilities firms jumped. South Korean shares rose 0.6 percent, while the rally in Taiwan faded somewhat, with stocks last flat for the day.
SoftBank rose almost 10 percent after Stargate Project partner soared 36 percent overnight in its biggest one-day percentage gain since 1992 as the 48-year-old tech giant forecast a demand surge from AI firms for its cloud computing services.
Chinese blue chips jumped 1.8 percent, while Hong Kong’s Hang Seng index trimmed earlier losses to be off 0.3 percent. Both Nasdaq futures and S&P 500 futures were little changed.
Overnight, a benign reading on US producer prices led markets to price in more chance of three interest rate cuts from the Federal Reserve this year. Investors have fully priced in a quarter-point move from the Fed at next week’s meeting, with an 8 percent chance of a 50 basis-point cut.
