Most Asian stock markets extended gains on Thursday as growing expectations of imminent U.S. Federal Reserve rate cuts lifted sentiment, while Australian shares hit record highs after weak jobs data strengthened bets of further policy easing by the Reserve Bank of Australia (RBA).
Gains were capped by renewed U.S.-China trade tensions, which kept some investors on the sidelines.
U.S. stock index futures were steady in early Asian trade after Wall Street closed largely higher on Wednesday, supported by strong earnings from major U.S. banks.
Asia stocks rebound as Fed easing bets firm Markets are increasingly pricing in a 25 basis point Fed rate cut at the Oct. 28–29 policy meeting, with another cut expected in December. Fed Chair Jerome Powell struck a dovish tone this week, highlighting risks to the labour market and signalling that balance sheet runoff could end soon.
Fed Governor Stephen Miran added to the dovish signals, warning that escalating U.S.-China trade tensions posed significant downside risks to growth. He called for quicker and more decisive rate cuts to support the economy.
Back in Asia, South Korea’s KOSPI led gains on Thursday, jumping nearly 2% as of 02:35 GMT. Both Samsung (KS:005930) and SK Hynix (KS:000660) jumped to record high levels amid optimism over AI-driven demand.
Japan’s Nikkei 225 climbed 1.2%, while the broader TOPIX index added 0.6%.
India’s Nifty 50 rose 0.5%, while Singapore’s Straits Times Index eased 0.5%, bucking the regional trend. Chinese shares fall amid US trade friction Gains across the region were limited by renewed worries over the U.S.-China trade relationship. Washington has criticised Beijing’s decision to tighten rare earth export controls and signalled possible retaliatory measures.
The tensions follow recent threats by President Donald Trump to impose additional 100% tariffs on Chinese imports, reviving memories of previous trade flare-ups that unsettled markets.
China’s blue-chip Shanghai Shenzhen CSI 300 edged 0.1% lower, while the Shanghai Composite fell 0.3%.
Hong Kong’s Hang Seng index dropped 0.8%.
Aussie shares hit record high; jobs data boosts RBA cut expectations Australia’s S&P/ASX 200 surged as much as 1.3% on Thursday to 9,109.7 points, its highest level ever. It traded 0.9% higher at the time of writing.
Data showed the unemployment rate rose to 4.5% in September from a revised 4.3% in August, the highest since November 2021. Employment increased by 14,900, below forecasts for a 20,500 rise, while the participation rate edged up to 67.0%.
The soft data reinforced expectations that the RBA could cut interest rates further in the coming months. Markets are pricing in a possible reduction before year-end, following the central bank’s decision to hold its cash rate at 3.6% in September.
