SYDNEY- Asian shares rallied on Thursday, tracking a huge revival in tech stocks helped by Meta and Nvidia, while prospects of imminent policy easing in the United States boosted global bonds and commodities.
The Federal Reserve held interest rates steady overnight but opened the door to a cut in September. That had traders wagering that the Bank of England might cut later in the day, with the probability of a move at 60 percent .
European futures are also set for a higher open, with EUROSTOXX 50 futures up 0.2 percent and FTSE futures rising 0.3 percent . Nasdaq futures gained 0.9 percent as shares of Facebook-parent Meta Platforms surged 7 percent after the bell on strong earnings.
The Japanese yen rallied to as much as 148.48 per dollar before running into resistance.
It was last up 0.2 percent at 149.77, having surged 1.8 percent overnight after the Bank of Japan raised interest rates for the second time in 17 years and signaled more tightening to come.
MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.7 percent , after ending July mostly flat. A regional MSCI IT index jumped 2.0 percent and Taiwan’s shares surged 1.8 percent .
Japan’s Nikkei however, tumbled 2.7 percent as the sharp jump in the yen clouded the outlook for exporters.
Chinese blue chips turned 0.3 percent lower after a private survey showed China’s manufacturing sector unexpectedly shrank in July, boding ill for economic growth momentum.
On Wall Street, tech stocks are making an extraordinary comeback after the recent sell-off. AI darling Nvidia rallied 13 percent , adding about $330 billion in stock market value on Wednesday.
Tech giants Apple and Amazon.com will report their earnings later on Thursday.
Also helping the global risk rally is dovish comments from Fed Chair Jerome Powell that policymakers had a “real discussion” about cutting at the July meeting. The central bank also said the risks to employment were now on a par with those of rising prices.
