Asian shares mostly higher as U.S. stocks hit records on easing inflation and AI optimism

Asian share markets were largely higher Thursday as a rally in U.S. equities — driven by signs of easing inflation and an upbeat forecast from Oracle on artificial intelligence demand — carried into the region, with technology stocks doing much of the heavy lifting.

Tokyo's Nikkei 225 led gains, rising 1.2% to 44,372.50, while SoftBank Group jumped 8.3% for a second consecutive day. Data released Thursday showed Japan's producer prices climbed 2.7% year-on-year in August, up from a 2.5% increase the prior month, a move that matched market expectations and reflected higher costs for food, transport equipment and machinery.

Markets in Greater China diverged. Hong Kong's Hang Seng slipped 0.3% to 26,127.77 even as mainland shares rose, with the Shanghai Composite adding 1.7% to 3,875.31. Chipmakers outperformed: Semiconductor Manufacturing International Corp. gained more than 6%, Hua Hong Semiconductor rose 4.8% and Cambricon Technologies — often likened to China’s Nvidia — climbed 9%. South Korea's Kospi advanced 0.9% to 3,344.20. Taiwan's Taiex rose 0.1%, trimming earlier gains, while India's BSE Sensex rose by less than 0.2%. Australia's S&P/ASX 200 fell 0.3% to 8,805.00.

Futures for major U.S. indexes showed modest strength, with the S&P 500 and the Dow Jones Industrial Average both up by less than 0.1% in early Asian trade.

On Wall Street, the S&P 500 rose 0.3% Wednesday to set an all-time high for a second straight day, while the Nasdaq inched higher and the Dow fell 220 points, or 0.5%. Traders credited a U.S. wholesale inflation report that showed unexpected slowing in August and a bullish outlook from Oracle, which said AI-related demand would lift revenue substantially. Oracle's shares soared 35.9% in their biggest one-day jump since 1992, even though the company's latest quarterly results narrowly missed analysts' expectations.

Taiwan Semiconductor Manufacturing Co., a key supplier for AI and advanced computing chips, saw its U.S.-traded shares rise 3.8% after reporting revenue that jumped nearly 34% in August from a year earlier. Apple weighed on the U.S. large-cap benchmark, falling 3.2% after unveiling new iPhone models that some analysts said offered few surprises.

"Asia’s Thursday tape was the kind of market that looks lively from a distance but flat when you press your nose against the glass," said Stephen Innes of SPI Asset Management, noting that Tokyo and Seoul attempted to follow Wall Street's momentum while Hong Kong and Sydney lagged, leaving the MSCI Asia-Pacific index roughly unchanged after five straight daily advances.

Commodities and currencies showed limited moves. Benchmark U.S. crude slipped 11 cents to $63.56 per barrel, and Brent crude dipped 8 cents to $67.41. The U.S. dollar rose to 147.78 yen from 147.36, while the euro eased to $1.1693 from $1.1704.

Investors remain focused on whether the U.S. economy can cool enough to allow the Federal Reserve to cut interest rates without tipping into recession. A U.S. consumer inflation report due Thursday is seen as a potentially decisive data point for market expectations about the timing and scale of Fed easing, and traders will be watching inflation trends closely in the run-up to the central bank's next policy decisions.