Asian stock markets rebounded on Thursday, led by Japan and China, as concerns over stretched technology valuations eased, while investors assessed fresh trade data from Australia.
The recovery followed sharp losses in the previous session, when Wall Street’s tech-led selloff rippled across global markets.
Major U.S. stock indices closed higher overnight, while futures tied to them were largely steady as of 04:07 GMT.
Asia stocks rebound after sharp declines Japan’s Nikkei 225 rose 1.5% after settling 2.5% lower a day earlier, while the broader TOPIX index advanced 1.4%.
"We think some profit-taking is natural after a runup, especially for the Nikkei 225 given its strong gains over the past month," UBS analysts said in a note.
China’s blue-chip Shanghai Shenzhen CSI 300 jumped 1.4%, buoyed by buying in heavyweight tech and consumer shares.
Hong Kong’s Hang Seng index climbed 1.6%, helped by a rebound in semiconductor and AI-related stocks. Hang Seng TECH sub-index surged over 2%.
Chinese chipmakers were also buoyed by a Reuters report stating that Beijing plans to ban the use of foreign-made artificial intelligence chips in state-funded data centres.
South Korea’s KOSPI rose 1.3% after declining as much as 6% on Wednesday.
Analysts said the market correction appeared to be temporary, with valuations adjusting after a prolonged rally.
Investors also kept a close eye on developments in Washington, where the U.S. Supreme Court began hearings on the legality of tariffs imposed by President Donald Trump. Justices raised doubts over the sweeping use of emergency powers to impose levies, a case that could have implications for global trade policy.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Australia exports jump in Sept; Asian banks’ earnings in focus Elsewhere, Singapore’s Straits Times Index climbed 1.3% on Thursday, while Australia’s S&P/ASX 200 edged 0.3% higher. Futures for India’s Nifty 50 ticked lower.
In regional data, Australia’s trade surplus widened sharply to A$3.94 billion in September from around A$1.11 billion in the previous month. The increase was driven by a strong rebound in exports, particularly commodities, while imports moderated.
Regional banks drew investor attention as quarterly results rolled in. National Australia Bank (ASX:NAB) shares dropped nearly 4% after the lender posted a full-year net profit slightly lower than the previous year but in line with expectations.
In Singapore, DBS Group (SGX:DBSM) shares rose 3% after reporting a record total income for the third quarter, supported by growth in wealth management and deposits.
Meanwhile, United Overseas Bank (SGX:UOBH) shares declined 3.5% as net profit slumped 72%, weighed down by credit provisions. UOB also projected a lower net interest margin for 2026.
