FX.co ★ Asian Shares Rise As Chip Shares Climb On Lower Yields

Asian stocks experienced a significant rise on Thursday, driven by stable bond markets and strong corporate earnings from the United States, particularly those related to the chip industry.

In response to comments by Chicago Fed President Austan Goolsbee, who advised caution in delaying interest rate cuts, Treasury yields experienced a drop. Prior to the release of key U.S. economic data, the U.S. dollar also weakened somewhat. Gold prices remained near two-month lows, while oil furthered its loss from the previous night following an unexpected increase in U.S. crude inventories.

Though Chinese markets were closed in observance of the Lunar New Year holiday, Hong Kong's Hang Seng index experienced a 0.41 percent rise to 15,944.63. In Japan, the Nikkei average reached a new 34-year high before a 1.21 percent rise to a closing of 38,157.94. The broader Topix index increased by 0.28 percent, settling at 2,591.85.

Shares related to the chip industry saw a significant surge, with Advantest, Screen Holdings, and Tokyo Electron experiencing growth between 2 to 6 percent. On the other end of the spectrum, Kirin Holdings plummeted by 4.6 percent post its full-year results announcement.

After data revealed a second consecutive quarter of GDP shrinkage in the October-December 2023 period in Japan, the yen remained near the crucial 150 per dollar mark, prompting doubts about the Bank of Japan's plans for exiting its ultra-easy policy this year..

Seoul stocks witnessed a slight decrease, with the Kospi average closing down at 0.25 percent at 2,613.80. On the other hand, Australian markets experienced a noticeable increase following weaker than anticipated employment numbers in January, leading to renewed expectations of an early rate cut by the Reserve Bank of Australia.

Banking and IT firms led the rise with the benchmark S&P/ASX 200 leaping up by 0.77 percent to 7,605.70. Wesfarmers and Origin Energy performed particularly well with a 5 percent and a 2.5 percent increase, respectively, following better-than-expected half-year profit reports. In contrast, however, BHP experienced a 1.7 percent drop as it grappled with a $3.2 billion impairment in relation to its Brazilian Samarco dam failure and a $2.5 billion impairment charge for its Western Australia Nickel business.

The New Zealand benchmark S&P/NZX 50 index slipped by 0.18 percent to 11,640.04.

U.S. stocks witnessed a sharp rise following heavy losses from the previous session caused by concerns over sustained high inflation and interest rates. The tech-focused Nasdaq Composite enjoyed a 1.3 percent lift, while the S&P 500 climbed by 1 percent and the Dow by 0.4 percent in the absence of significant economic news and a less volatile bond market.