China and Technology Continue to Support Asian Stocks Rally – Asia Market Wrap

As further evidence of the strength in technology companies rippled around the region, Asian equities soared on Thursday. The Yen found it difficult to gain ground on the Dollar.

Alongside futures for the Nasdaq 100, equity benchmarks in South Korea’s and Japan’s tech-heavy markets gained. A robust sales projection led to an after-hours rally in Micron, a Nasdaq 100 participant, contributing to the gains. S&P 500 futures also increased.

Asian technology companies outperformed as a gauge of the region’s equities resumed a rise from earlier in the week, trading at its highest level in over three years. The benchmark CSI 300 index rose for the sixth consecutive day after the government announced additional stimulus to help the economy, including cash transfers. A index of Chinese stocks in Hong Kong climbed for the tenth straight day, the greatest winning streak in more than six years.

Asian markets rose this week after the PBOC announced a raft of steps to stimulate the world’s second-largest economy. Nonetheless, several economists have questioned whether the recovery is sustainable, citing fears about deflation and a rebound in demand. On Wednesday, the Golden Dragon index of Chinese firms registered in the US dipped, possibly indicating that the surge has run its course.

The Yen was trading around 145 per dollar after falling more than 1% versus the dollar on Wednesday. The Japanese Yen has softened amid indications that the BoJ is not in a hurry to raise interest rates further.