Asian stock markets climbed on Thursday, tracking overnight gains on Wall Street, as investor optimism over strong U.S. corporate earnings and booming artificial intelligence demand outweighed mounting trade tensions between Washington and Beijing.
Meanwhile, gold surged to a record high, and the Japanese yen strengthened as investors sought safe-haven assets.
Japan’s Nikkei 225 rose 0.8%, boosted by chip and AI-related shares, while Taiwan’s Taiex gained 1.4%, South Korea’s KOSPI jumped 1.8%, and Australia’s ASX 200 advanced 1.1%, all reaching lifetime highs.
Semiconductor stocks led the rally after the Philadelphia Semiconductor Index in the U.S. surged 3% overnight.
Investor focus turned to Taiwan Semiconductor Manufacturing Co. (TSMC), set to report earnings later Thursday, following upbeat results from Dutch chipmaking equipment giant ASML, which exceeded market expectations amid surging AI investment.
Hong Kong’s Hang Seng and China’s CSI 300 also recovered from early losses, despite pressure from escalating trade frictions. On Wall Street, the S&P 500 gained 0.4% and the Nasdaq Composite rose 0.6%, buoyed by robust U.S. bank earnings that pointed to continued economic resilience.
However, geopolitical jitters persisted after U.S. President Donald Trump declared that America was “in a trade war with China.”
Markets were already bracing for new tariffs, though U.S. Treasury Secretary Scott Bessent hinted that a tariff reprieve could be extended and confirmed that Trump still plans to meet Chinese President Xi Jinping later this month in South Korea.
Amid the tensions, gold climbed another 0.6% to an all-time high of $4,234.41 per ounce, reflecting investor caution.
The U.S. dollar weakened for a third consecutive session, slipping 0.2% against a basket of major currencies and 0.4% versus the yen to 150.51, near the key psychological threshold of 150.
In energy markets, oil prices rebounded from five-month lows after Trump announced that Indian Prime Minister Narendra Modi had pledged to halt oil imports from Russia, which supplies about one-third of India’s crude.
Brent crude rose 0.9% to $62.48 a barrel, and U.S. West Texas Intermediate (WTI) also added 0.9% to $58.81.
Analysts warned, however, that volatility may persist until both Washington and Beijing ease their rhetoric. “The brinkmanship between the U.S. and China hasn’t dissipated yet,” said Kyle Rodda, senior market analyst at Capital.com.
“Markets will only calm once China backs off rare earth export threats and the U.S. reverses its planned tariff hike to 100%.”
With trade tensions simmering and gold soaring, investors are navigating a complex mix of optimism and anxiety, balancing faith in corporate growth with fears of a deepening economic standoff between the world’s two largest economies.
Source: Reuters
Written By Rodney Mbua
