(Sharecast News) - Asia-Pacific markets advanced on Thursday, with several regional bourses resuming trade after the Lunar New Year holiday and tracking overnight gains on Wall Street.
Markets in mainland China and Hong Kong remained closed for the holiday break.
"The MSCI Asia Pacific Index saw a 0.4% uptick, with South Korea's Kospi hitting a new all-time high," noted As Patrick Munnelly, market strategy partner at TickMill.
"This rally mirrored the positive momentum on Wall Street, where the S&P 500 gained 0.6% and the Nasdaq 100 climbed 0.8% on Wednesday."
He added that "Tech stocks made a strong comeback, signalling that concerns about AI-related disruptions might be easing. Many investors saw the situation as an opportunity to buy, further buoying market sentiment."
Tokyo rises as core machinery orders surge
In Japan, the Nikkei 225 rose 0.57% to 57,467.83, while the broader Topix gained 1.18% to 3,852.09.
Yokohama Rubber surged 13.18%, Japan Steel Works jumped 9.2% and Omron Corporation added 6.86%.
Data showed Japan's core machinery orders surged 19.1% month on month to JPY 1,052.5bn in December, rebounding from an 11% drop in November and far exceeding expectations for a 4.5% increase.
The reading marked the strongest growth in more than a decade, driven by a 25.1% jump in manufacturing orders to JPY 498.3bn and an 8.2% rise in non-manufacturing orders to JPY 533.1bn.
By industry, the largest increases were recorded in petroleum and coal products at 499.9%, non-ferrous metals at 207.1%, other non-manufacturing at 83.5%, real estate at 67.3% and business-oriented machinery at 67.1%.
On a year-on-year basis, private-sector orders climbed 16.8%, reversing a 6.4% contraction in November and beating forecasts for a 3.9% rise.
Core machinery orders are seen as a volatile but important leading indicator of capital expenditure over the next six to nine months.
Munnelly also highlighted that "in Japan, demand for a 20-year government bond auction fell below its 12-month average".
"This dip came as lower yields - following the election victory of prime minister Sanae Takaichi - dampened investor interest."
Kospi returns from holiday with a bang
South Korea outperformed, with the Kospi 100 climbing 3.22% to 6,447.69 and hitting a fresh record high.
Hanwha Solutions soared 27.45%, NH Investment & Securities rose 18.93% and Samsung Electro-Mechanics gained 15.67%.
The rally came as regional markets tracked Wall Street gains and trading resumed after the holiday.
Munnelly said that "Samsung Electronics saw its stock jump as much as 5.4% on the Korea Exchange after a three-day holiday break".
"This movement came on the heels of reports suggesting that Samsung is negotiating prices for its latest AI-targeted memory chip, which could be priced up to 30% higher than its predecessor."
He added that "So far this year, the MSCI Asia Pacific Index has risen about 12%, led by South Korea's Kospi, which has surged over 30%.
"In contrast, US stocks have shown little movement, with the S&P 500 remaining largely flat since late December."
Separately, former South Korean president Yoon Suk Yeol was sentenced to life imprisonment after being found guilty of leading an insurrection during his failed attempt to declare martial law in December 2024.
Sydney in the green as unemployment comes in under forecasts
In Australia, the S&P/ASX 200 advanced 0.88% to 9,086.20.
Hub24 jumped 14.16%, Sonic Healthcare gained 9.89% and Netwealth Group added 6.04%.
Official data showed the unemployment rate held steady at 4.1% in January, below expectations for 4.2%, while employment increased by 17,800, driven entirely by full-time roles, as the previous month's hiring figure was revised higher.
The figures followed the Reserve Bank of Australia's decision to raise interest rates, with policymakers maintaining that their strategy to return inflation to the 2% to 3% target while preserving labour market strength remains appropriate.
Across the Tasman Sea, New Zealand's S&P/NZX 50 rose 1.49% to 13,444.20, with Synlait Milk up 4.26%, Fletcher Building gaining 3.42% and Scales Corporation rising 3.39%.
Dollar flat-to-weaker as oil prices rise
In currency markets, the dollar was flat against the yen at JPY 154.81, while it fell 0.19% on the Aussie to AUD 1.4173 and slipped 0.16% against the Kiwi to change hands at NZD 1.6737.
Oil prices moved higher, with Brent crude futures last up 1.32% on ICE at $71.28 per barrel, and the NYMEX quote for West Texas Intermediate rising 1.3% to $66.04.
Munnelly said oil prices "remained steady after experiencing their biggest single-day surge since October," while adding that gold prices "held steady, hovering near $4,970 an ounce, as bargain hunters stepped in following a two-day decline."
Reporting by Josh White for Sharecast.com.
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