Asian Markets Advance as Tokyo and Seoul Hit Records After Strong U.S. Jobs Data

BY EMMANUEL OGBONNA

Asian equities mostly moved higher on Thursday, with benchmark indexes in Japan and South Korea climbing to fresh records, as investors digested a stronger-than-expected U.S. employment report that left Wall Street struggling for direction.

U.S. stock futures pointed modestly higher in early trading, suggesting a steadier start after the previous session’s mixed performance in New York.

In Tokyo, the Nikkei 225 briefly surged past the 58,000 level in early trade as markets reopened following a public holiday. The index later pared those gains, slipping just 10 points to close at 57,639.84. Despite the pullback, Japanese equities remain near historic highs, buoyed by political developments and expectations of continued economic support.

Investor sentiment in Japan has strengthened since Prime Minister Sanae Takaichi secured a decisive victory in Sunday’s parliamentary election. Market participants anticipate that her administration will advance policies aimed at stimulating growth, supporting corporate earnings and sustaining investor confidence. The election outcome has reinforced expectations of fiscal measures and structural reforms designed to bolster domestic demand and enhance Japan’s competitiveness.

In South Korea, the Kospi index climbed 3.1% to 5,522.27, surpassing the 5,500 mark for the first time in its history. The rally was driven largely by gains in technology stocks, which carry significant weight in the index.

Samsung Electronics, the country’s largest listed company and a global leader in semiconductors and consumer electronics, rose 6.4%. Chipmaker SK Hynix advanced 3.3%, reflecting renewed optimism about demand for memory chips and broader semiconductor recovery prospects.

Elsewhere in the region, performance was more subdued. Hong Kong’s Hang Seng index declined 0.9% to 27,028.67, weighed down by profit-taking in select sectors. On the mainland, the Shanghai Composite edged up 0.1% to 4,140.59, indicating relatively steady sentiment among Chinese investors.

In Australia, the S&P/ASX 200 added 0.3% to 9,043.50, supported by gains in mining and financial shares.

The mixed but generally positive tone in Asia followed a choppy session on Wall Street, where U.S. markets initially pushed toward record territory before losing momentum. The S&P 500 finished virtually unchanged, slipping 0.34 points to close at 6,941.47. The Dow Jones Industrial Average fell 0.1% to 50,121.40, while the Nasdaq composite dropped 0.2% to 23,066.47.

Markets in the United States were reacting to a Labor Department report showing that employers added 130,000 jobs in January, significantly exceeding economists’ forecasts.