Asian Stock Market: Trades in positive territory, led by tech stocks

Asian stock markets trade in positive territory on Thursday, led by technology stocks after major chipmaker Nvidia Corp reported stronger-than-expected quarterly profits. However, the fear of China’s economic woes and the possibility of higher interest rates in the US remain in focus.

At press time, China’s Shanghai gains 0.47% to 3,092, the Shenzhen Component Index gains 0.54% to 10,206, Hong Kong’s Hang Sang is up 1.09% to 18,043, South Korea’s Kospi gains 1.01%, Japan’s Nikkei is up 0.43% and Taiwan's Weighted Index rise 1.43%

Investors are concerned about the economic slowdown in China and the spillover effect on other countries. On Tuesday, China's President Xi Jinping told the BRICS group that the Chinese economy was resilient and that the fundamentals for the long term were intact.

On the same day, the US criticized China for reducing the transparency of its reporting of fundamental economic data in recent months and for clamping down on Chinese firms that had been providing such data. The US-China relationship remains in the spotlight, and rising conflict between the world's two biggest economies may put pressure on the regional economy.

Japanese equities gain traction, supported by tech stocks. About the data, the first reading from Japan's manufacturing PMI for August increased to 49.7 from 49.6. The result was lower than the 49.5 expected. While Service PMI rose from 53.8 to 54.3 over the same period. Nevertheless, the downbeat first reading of S&P PMI data from the US, UK, and Eurozone fuels recession fears and increases demand for the Japanese Yen, a traditional safe-haven asset.

Korea’s KOSPI edges higher after the Bank of Korea (BoK) decided on Thursday to maintain the interest rate unchanged at 3.50% for a fifth straight meeting. Since its last interest rate rise in January, the BOK has maintained a steady monetary policy, and most economists believe the central bank has completed its tightening cycle. BoK Governor, Rhee Chang-Yong stated that it is too early to discuss a rate cut and that uncertainty regarding US monetary policy is extremely high.

Looking ahead, the Jackson Hole Symposium will be a closely watched event for investors later in the day. On Friday, the attention will shift to the Fed Chairman Jerome Powell's Speech. The speech could provide insights into economic conditions and hints as to whether inflation is under control or whether additional interest rate hikes are required to combat inflation.