Asian stock markets opened mostly higher on Thursday as softer US inflation data reduced expectations of another near-term Federal Reserve rate increase. Technology shares led the advance, with particularly strong gains in Japan and South Korea, although Hong Kong, Australia and India moved against the broader regional trend.
Tokyo and Seoul lead the advance
Japan’s Nikkei 225 opened 509 points, or 0.75 per cent, higher at 68,033. The index strengthened further during the morning session, rising by more than 1.5 per cent as investors returned to semiconductor, electronics and artificial intelligence-related companies.
South Korea delivered the strongest opening among the region’s major markets. The Kospi began trading 2.96 per cent higher at 6,773 and subsequently extended its advance beyond 4 per cent. Samsung Electronics and SK Hynix recorded substantial gains as investors responded positively to stronger earnings from US artificial intelligence companies and renewed expectations of continued demand for advanced computer chips.
Mainland China rises while Hong Kong opens lower
Mainland Chinese markets also advanced at the opening bell. The Shanghai Composite gained 0.27 per cent to 3,957, while the Shenzhen Component climbed 0.85 per cent to 14,536. The technology-heavy ChiNext index performed even more strongly, opening 1.52 per cent higher at 3,656.
Hong Kong moved in the opposite direction. The Hang Seng Index opened 152 points, or 0.6 per cent, lower at 25,288. The Hang Seng Tech Index declined 0.29 per cent, while the China Enterprises Index fell 0.54 per cent. However, losses narrowed as the morning progressed, reflecting improving sentiment across the wider Asian region.
Australia and India remain under pressure
Australia’s S&P/ASX 200 opened approximately 0.2 per cent lower and extended its decline during morning trading. Investors assessed a heavy schedule of corporate results alongside comments from the Reserve Bank of Australia indicating that earlier interest-rate increases were beginning to restrict consumer spending.
Indian equities also opened cautiously. The Nifty 50 fell around 0.4 per cent in early trading, while the BSE Sensex slipped approximately 0.3 per cent. Elevated oil prices remained a particular concern for India, one of the world’s largest crude-importing economies. Higher energy costs could increase inflation, weaken growth and place additional pressure on the country’s trade and fiscal balances.
US inflation provides the main catalyst
The regional advance followed data showing that US consumer prices increased by 0.1 per cent in July, broadly matching expectations. Financial markets reduced the estimated probability of a Federal Reserve rate increase in September to approximately 40 per cent, compared with 54 per cent one week earlier.
The Japanese yen strengthened slightly against the dollar as investors also considered the possibility of an earlier Bank of Japan rate increase. Japanese wholesale prices rose 7.2 per cent from a year earlier in July, reinforcing concerns about persistent domestic inflation.
Technology optimism meets geopolitical caution
Thursday’s opening demonstrated that technology and interest-rate expectations remain the strongest immediate influences on Asian equities. However, uncertainty surrounding the Gulf conflict and the Strait of Hormuz continues to limit risk appetite.
Brent crude remained above $88 per barrel despite easing slightly, leaving energy costs as an important risk for import-dependent Asian economies. The positive opening therefore reflected cautious relief rather than a complete improvement in the global market outlook.
Newshub Editorial in Asia – 13 August 2026
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