Asia report: AI, tech stocks lead regional rally
By Josh White
Date: Thursday 06 Nov 2025
(Sharecast News) - Asia-Pacific equities advanced on Thursday, tracking overnight gains on Wall Street as a rebound in artificial intelligence stocks lifted sentiment across the region.
The rally followed stronger-than-expected third-quarter results from AMD, which bolstered confidence in the AI sector after recent valuation-driven sell-offs.
Patrick Munnelly, market strategy partner at TickMill, said that Asian investors' risk sentiment recovered, with markets bouncing back from the sharp losses witnessed in the previous session.
"This rebound was fuelled by stronger-than-expected US economic data, which reignited investor confidence and drew attention back to indexes hovering near record highs," he said.
Equities in the green across the region
Japan led regional gains, with the Nikkei 225 climbing 1.34% to 50,883.68 and the Topix adding 1.38% to 3,313.45.
Chip-related and AI-linked shares were among the strongest performers, with Advantest rising 3.15%, Renesas Electronics gaining over 3%, and Disco Corp jumping more than 6%.
Konica Minolta surged 15.45%, while Fujikura and Ebara Corporation gained 9.74% and 7.85%, respectively.
"Concerns over overvalued technology stocks appear to have eased for now, as Wednesday's steep selloff didn't escalate into widespread panic," Munnelly noted.
In China, mainland markets also advanced, with the Shanghai Composite up 0.97% at 4,007.76 and the Shenzhen Component rising 1.73% to 13,452.42.
Gains were led by industrial and manufacturing stocks, including Beijing Worldia Diamond Tools, which jumped 11.22%, Jiangsu Sanfangxiang Industry, up 10.21%, and Chongqing Construction Engineering Group, which gained 10.06%.
Hong Kong's Hang Seng Index rose 2.12% to 26,485.90, buoyed by strength in major financial and technology shares despite weak debuts for autonomous vehicle firms WeRide and Pony.ai.
China Life Insurance soared 34.86%, while China Hongqiao Group and SMIC climbed 9.9% and 7.32%, respectively.
"In Hong Kong, shares of Pony.ai and WeRide saw declines as the Chinese autonomous driving companies made their market debut," Munnelly added.
"The two firms collectively raised close to $1.2bn through their share offerings."
South Korea's Kospi gained 0.55% to 4,026.45, led by strong advances in Youngone Holdings, Ildong Pharmaceutical, and Hanwha General Insurance, which rose 14.86%, 14.29%, and 13.88%, respectively.
Sydney bourse manages gains as Australia trade balance widens
In Australia, the S&P/ASX 200 added 0.3% to 8,828.30 as miners and gaming firms lifted the benchmark.
Light & Wonder gained 8.21%, Emerald Resources rose 6.67%, and Ramelius Resources advanced 5.63%.
Australia's trade balance widened to a AUD 3.94bn (£1.96bn) surplus in September, in line with expectations, supported by a 7.9% rebound in exports.
Strong overseas demand for commodities such as iron ore, coal, and mineral fuels underpinned the improvement, while imports slowed to 1.1% growth from 3.3% in August.
Across the Tasman Sea, New Zealand's S&P/NZX 50 fell 0.32% to 13,576.81, weighed by losses in Serko, down 4.45%, Skellerup Holdings, off 3.25%, and Goodman Property Trust, which slipped 2.82%.
In currency markets, the yen strengthened slightly, with the dollar last down 0.24% to trade at JPY 153.75.
The Australian dollar meanwhile firmed 0.07% on the greenback to AUD 1.5362, while the Kiwi eased 0.06% to NZD 1.7671.
Oil prices extended gains, with Brent crude futures last up 0.71% on ICE at $63.97 per barrel, and the NYMEX quote for West Texas Intermediate rising 0.87% to $60.12.
Turning to broader macro factors, Munnelly said the resilience of the American economy has already prompted traders to scale back expectations for a December rate cut.
"Markets now estimate a 61% likelihood of a 25-basis-point reduction, down from around 70% earlier in the week," he said.
"Regional Fed surveys show a slow but stable labour market, and absent inflation data, a December cut seems unlikely."
He added that "on the trade front, US Supreme Court justices expressed scepticism on Wednesday regarding the legality of president Donald Trump's sweeping tariffs.
"This case, which carries significant implications for the global economy, represents a critical challenge to the extent of Trump's authority in imposing such measures."
Reporting by Josh White for Sharecast.com.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN