Wall Street closes at a record for the first time since end of January
Investing.com-- Asian stocks extended their rally on Wednesday, with technology shares tracking strong gains on Wall Street, while cautious optimism over a potential U.S.-Iran diplomatic breakthrough boosted broader risk sentiment.
Regional markets took cues from a robust U.S. session, where the S&P 500 climbed 1.2% to finish just shy of an all-time high, and the Nasdaq surged nearly 2% on continued strength in technology stocks.
U.S. stock index futures were largely unchanged as of 22:53 ET (02:53 GMT).
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KOSPI, Nikkei back near record highs
Japan’s Nikkei 225 advanced around 1%, hovering near record levels. The broader TOPIX index edged 0.3% higher.
South Korea’s KOSPI outperformed, jumping more than 3% and surpassing the 6,100 mark intraday, coming back in sight of record highs hit earlier this year.
Gains were driven by a rally in memory chipmakers on expectations of sustained demand linked to artificial intelligence.
SK Hynix (KS:000660) shares hit a fresh record high on Wednesday, while Samsung Electronics (KS:005930) shares also climbed.
Elsewhere, China's Shanghai Composite index edged 0.4% higher, while Hong Kong's Hang Seng jumped over 1%.
Singapore's Straits Times Index rose 0.4%, while Australia's S&P/ASX 200 edged 0.2% higher.
Futures tied to India's Nifty 50 were largely unchanged.
US-Iran peace hopes support sentiment
Investor sentiment was also supported by easing geopolitical concerns, after signals from Washington suggested that talks with Tehran could resume.
This came even as tensions remained elevated. The U.S. has begun a naval blockade of ships leaving Iranian ports, while Tehran has threatened retaliation against ports in neighboring Gulf states after weekend talks collapsed.
Hopes of renewed negotiations helped push oil prices lower, easing inflationary pressures and supporting equities.
Meanwhile, softer-than-expected U.S. producer price data reinforced expectations that pipeline inflation pressures may be moderating, adding to the positive tone across global markets.
Market participants also looked out for major bank earnings in the U.S.
