Asia stocks: China leads gains on US AI optimism; Japan hits fresh record high

Most Asian stock markets rose on Thursday, with China leading gains on renewed U.S. artificial intelligence optimism, while Japan’s Nikkei notched fresh record highs amid political turmoil at home.

Traders kept a close eye on U.S. consumer price inflation data due later in the session.

On Wall Street, the S&P 500 and the tech-heavy NASDAQ Composite index hit their second consecutive record closing highs on Wednesday, boosted by a rally in Oracle shares and other AI-related stocks.

Gains were also aided by expectations of a Federal Reserve rate cut next week. U.S. stock index futures traded marginally higher in Asia hours on Thursday.

Japan’s Nikkei hits new record high after PM exit

Japan’s Nikkei 225 index jumped over 1% on Thursday to hit a fresh record high of 44,288.47 points, reaching peaks above 44,000 points for the second time this week.

The move comes after Japanese Prime Minister Shigeru Ishiba stepped down on Sunday following heavy election losses and growing internal party dissent.

This sparked expectations that his successor may pursue more expansionary fiscal and monetary policies.

Market sentiment was also supported this week by confirmation of a U.S.-Japan deal lowering tariffs on Japanese auto exports by mid-September.

Japan’s broader TOPIX index edged 0.2% higher, remaining just below record highs reached earlier this week.