Asian markets rise boosted by TSMC

Asian equities increased on Thursday, with Japanese stocks reaching all-time highs. Technology stocks gained after TSMC, the world's largest chipmaker, released sales statistics that above expectations, increasing optimism in artificial intelligence.

Regional stocks followed Wall Street's overnight gain, as the S&P 500 and NASDAQ Composite soared to all-time highs. Fed Chair Jerome Powell's remarks stoked expectations of a gentle landing for the US economy and the eventual decline in interest rates this year.

Powell's remarks brought the impending consumer price index inflation data front and centre, as the data will probably affect the Fed's stance on interest rates.

TSMC reached a new high and increased by about 2% in Taiwanese trade following the release of robust June revenue data. The artificial intelligence industry's increasing demand for chips resulted in significant benefits for the chipmaker.

This idea helped other tech stocks in Asia. The tech-focused Hang Seng and KOSPI indices gained 0.8% and 1.5%, respectively.

Although gains in tech stocks helped to stimulate the Japanese markets, the Bank of Japan is likely to be cautious about raising interest rates further due to the dismal core equipment orders data that further stoked fears about the country's economic health. This idea was reinforced by the lacklustre producer inflation numbers that were announced on Wednesday.

Other Asian markets saw gains as well, as speculation about U.S. interest rate reductions increased demand for high-risk equities.

The Shanghai Composite and Shanghai Shenzhen CSI 300 indices in China increased by 0.7% and 1.1%, respectively. The two recovered from more than four-month lows reached earlier in July, with some assistance from tech stocks.

Numerous mediocre economic data points hurt Chinese equities and increased worries about the nation's slow pace of economic recovery. Due on Friday, trade statistics will be the main focus for more indications about the largest economy in Asia.

(Sources: investing.com, reuters.com)