Asian chip stocks lift Nikkei 2.7% as cooling US inflation eases rate pressure
Asian stock markets gained on 1 October, led by a 2.7% rise in Tokyo's Nikkei following strong Micron revenue projections and lower-than-expected United States inflation data.
Asian equities advance on United States inflation data
Asian equity markets traded predominantly in positive territory on 1 October following the release of United States inflation figures from the prior day. Economic data published on Wednesday, 30 September showed that consumer inflation in the United States increased less than expected during the month of August. The softer inflation reading dampened market expectations that the Federal Reserve would implement an additional interest rate increase during its October policy meeting. Concurrently, interest rate market pricing indicated that the probability of the United States central bank enacting a rate cut in October fell further to approximately 38%.
Semiconductor rally lifts Nikkei and Kospi benchmarks
Technology shares provided the primary upward momentum across regional exchanges following an optimistic financial outlook from United States chip producer Micron. Micron projected first-quarter revenue that exceeded consensus estimates from Wall Street analysts, reinforcing expectations across Asian markets that persistent demand for artificial intelligence hardware will continue to bolster global sales of memory chips.
- Advantest
- 7.7 %
- Tokyo Electron
- 5.6 %
- Kioxia
- 4.4 %
- Softbank Group
- 3.7 %
- Samsung Electronics
- 2.2 %
- SK Hynix
- 2.1 %
- TSMC
- 0.8 %
The sector-wide advance generated substantial gains among Japanese semiconductor equipment suppliers, manufacturing toolmakers, and technology conglomerates in Tokyo. Shares of Advantest rose 7.7%, Tokyo Electron climbed 5.6%, and Kioxia gained 4.4%, while Softbank Group advanced 3.7%. These gains propelled the technology-heavy Nikkei index up by 2.7%, building upon an earlier advance of 2.4% recorded in morning trade. Tokyo's broader Topix index moved up by a more restrained 0.3%.
In South Korea, memory chip manufacturers experienced a parallel surge in investor interest, lifting the benchmark Kospi index by 1.1% after it had started the trading day virtually unchanged. Shares of Samsung Electronics rose 2.2% in Seoul, while rival memory maker SK Hynix gained 2.1%. In Taipei, shares of Taiwan Semiconductor Manufacturing Company (TSMC) finished the session 0.8% higher.
- Nikkei 225
- 2.7 %
- Kospi
- 1.1 %
- Topix
- 0.3 %
High bond yields and oil prices temper market confidence
While the cooler United States inflation figures eased immediate concerns about central bank rate hikes, broader equity market sentiment was restrained by underlying macroeconomic pressures. Regional investors remained cautious as sovereign bond yields hovered near multi-year highs and crude oil prices stayed elevated. Saxo investment strategist Charu Chanana pointed to the divergence between short-term interest rate adjustments and persistent long-term capital financing costs.
The weaker US data took the pressure off Fed expectations and short-term yields, but the concern over capital costs has not really disappeared as long-term yields remain high.
Mainland Chinese bourses shut for National Day holiday
Regional trading volumes and liquidity were shaped by market holidays across mainland China. Equity trading in Shanghai and across all mainland Chinese bourses was halted on 1 October for the official National Day holiday. The mainland exchanges will remain closed through 7 October, leaving Asian market activity concentrated in open financial centres including Tokyo, Seoul, Taipei, and Singapore throughout the first week of the month.
