Tech follows the Wall Street bounce, driving up Asian markets

The technology sector led most Asian markets higher on Thursday, mirroring Wall Street's overnight advance. However, overall gains were constrained as the Federal Reserve downgraded its prediction for interest rate reductions.

As markets anticipated a meeting of the Bank of Japan, where the central bank is largely expected to tighten policy further, Japanese equities lagged behind their rivals.

Wall Street, where the NASDAQ and S&P 500 recorded all-time highs on Wednesday as a surge in technology companies propelled by artificial intelligence continued, served as a good model for regional markets. A mild inflation figure from the consumer price index also lifted spirits.

Although the Fed cautioned that it only anticipated the prospect of one rate decrease this year, down from earlier expectations of three, sectors outside of technology witnessed mediocre gains. In light of sticky inflation, several officials were also observed advocating against rate reductions.

This idea hindered advances in most Asian markets.

The Nikkei 225 and TOPIX indices in Japan fluctuated between flat and low on Thursday, as investors' sentiment became negative ahead of the BOJ meeting on Friday.

Though the BOJ is anticipated to significantly reduce its purchases of government bonds, tightening monetary policy, interest rates are likely to remain steady.

The best-performing indices on Thursday were those with a lot of technology.

Tech stocks rose overnight like their US counterparts, with Apple rising more than 7% on its announcement that it will be integrating artificial intelligence (AI) into its flagship devices. The creator of iPhones will collaborate with OpenAI as well.

Chinese markets declined as news of increased trade scrutiny from the United States against the nation damaged public opinion of the nation.

This week, reports surfaced suggesting that the United States was thinking of extending its semiconductor penalties against Russia to include third-party Chinese vendors.

(Sources: investing.com, reuters.com)