Asian shares rise supported by the return of interest in technology stocks

Asian shares rose as investors focused on technology sector bets after a week dominated by fears of a trade war between the United States and China. The MSCI Asia-Pacific index rose 1%, with gains in the benchmark indices of South Korea, Japan and China. The moves were driven in part by the return of interest in technology stocks, following strong results from Dutch chipmaker ASML Holding, which showed the artificial intelligence boom could still boost corporate profits. A broad recovery and cautious optimism in Asian markets. The broad wave of gains in Asian stocks reflected investor optimism about the region, despite renewed trade tensions between Washington and Beijing. Asian stocks put in a strong performance this year, as the region’s index gains outperformed the US indices, returning around 23%. “Investors are happy to continue looking for incremental gains, but are willing to sell immediately if trade tensions escalate or geopolitical risks increase,” said Nick Tweddell, senior analyst at AT Global Markets in Sydney. He added that investors will remain “cautiously optimistic” until the picture becomes clearer after the upcoming meeting between Donald Trump and his Chinese counterpart Xi Jinping, which is expected to be held on the sidelines of the upcoming Asia-Pacific Economic Cooperation (APEC) summit. Tech Stocks Lead Gains Despite rising market gains across several sectors on Thursday, tech companies were among the most notable gainers. Shares of Chinese company ZTE ( ZTE ) jumped 10%, reversing sharp losses earlier in the week. Shares of Korean chipmaker SK Hynix also rose 5.6%, contributing to a 1.8% rise in the benchmark “KOSPI” index. In other markets, gold rose above the $4,242 an ounce level, extending its year-to-date gains to more than 60%, supported by rising trade tensions and growing expectations of a cut in US interest rates, boosting demand for the metal as a safe haven. The Bloomberg Dollar Index fell for a third straight day, while US bonds saw mixed results in Asia after two-year bond yields neared their lowest levels this year in the New York session. Renewed trade concerns after Trump’s statements. US markets saw sharp swings after President Trump’s remarks confirming that the United States is “in a state of trade war with China” in exchange for Treasury Secretary Scott Besent’s indication of a possible long-term truce. After months of relative calm, tensions between Washington and Beijing have been renewed, causing volatility in stocks after a wave of selling on Friday, followed by the entry of “buy-the-dip” investors. Also read: Besant expects a comprehensive global response to China’s new restrictions on rare earths. Trump spoke hours after Bescent raised the possibility of extending the period of suspension of customs duties on Chinese goods for more than three months, if China abandons its plan to impose strict export restrictions on rare earth fertilizers. The United States and China have agreed to a series of 90-day trade truces since the start of the year, with the current truce ending next November. Oil recovers from five-month low Oil rose from a five-month low after Trump said Indian Prime Minister Narendra Modi had pledged to end his country’s purchases of Russian oil, a move that could lead to a tightening of global supplies. In Japan, political tensions rose with ruling party leader Sanae Takaishi calling on Osaka-based opposition party leaders to back her in the upcoming parliamentary vote to choose a new prime minister next week.