FX.co ★ Asian Shares Advance In Thin Holiday Trade

Asian stocks saw a general increase during a subdued holiday trading session on Thursday. This uptick came as investors assessed largely favorable tech earnings from the U.S. and awaited further direction regarding President Trump's tariff policies, particularly relating to Canada, Mexico, and China.

The yen gained strength against the dollar and euro due to indications that the Bank of Japan will continue increasing interest rates, unlike other central banks, which are reducing them.

The dollar softened, and gold prices inched up following a signal from the Federal Reserve that there isn't an urgency to lower interest rates. Meanwhile, the European Central Bank is set to meet later in the day, with market analysts expecting a 25 basis point rate cut, marking the first of four anticipated reductions through 2025.

Oil prices showed mixed movements in Asian markets after descending in the previous session, attributed to official reports revealing an increase in U.S. inventories.

Japan's markets saw a slight rise as semiconductor stocks recovered from DeepSeek-related issues. Tokyo Electron climbed 1.9 percent, and Advantest increased by 3.2 percent.

In contrast, SoftBank Group shares declined by 1.1 percent following a Financial Times article suggesting the company is contemplating a $25 billion investment in OpenAI.

The Nikkei average rose by 0.25 percent to close at 39,513.97, while the Topix index ended 0.23 percent higher at 2,781.93.

Australian markets reached record highs, buoyed by softer inflation data released on Wednesday, which raised hopes for potential interest rate cuts by the Reserve Bank. The S&P/ASX 200 index climbed 0.55 percent to 8,493.70, driven by tech, mining, and energy stocks. The All Ordinaries index increased by 0.52 percent to finish at 8,745.90.

Karoon Energy saw a surge of 7.7 percent after announcing a $120 million share buyback initiative. Conversely, Zip Co’s shares dropped 25.4 percent following Q2 earnings that failed to meet expectations.

New Zealand's benchmark S&P/NZX-50 index fell 0.57 percent to 12,928.38, marking its fourth decline in five trading sessions, with Auckland International Airport shares falling nearly 2.5 percent.

Markets in China, Hong Kong, Singapore, South Korea, Malaysia, and Taiwan remained closed due to the Lunar New Year celebrations.

In the U.S., stocks retreated overnight after the Federal Reserve maintained the interest rates at their current levels, as expected, and omitted previous language regarding inflation progress from its statement.

"In evaluating future adjustments to the target range for the federal funds rate, the Committee will closely analyze newly available data, the evolving economic outlook, and the balance of risks," stated the policy announcement.

The Nasdaq Composite and the S&P 500, both heavily weighted towards technology, each decreased by roughly half a percent, while the Dow Jones dropped by 0.3 percent.