Asian Shares Rise as Tech Rally on Wall Street and Weaker Dollar Boost Risk Appetite

Asian share markets were mostly higher Thursday as a rally in U.S. technology stocks and a softer dollar bolstered regional risk appetite, though Chinese mainland indexes fell on concerns about regulatory intervention and liquidity.

Japan’s Nikkei 225 led gains, jumping 1.2% to 42,437.37. Australia’s S&P/ASX 200 added 0.6% to 8,791.50, South Korea’s Kospi rose 0.2% to 3,192.22, Taiwan climbed 0.7% and India’s BSE Sensex gained 0.6%. In contrast, Hong Kong’s Hang Seng slipped 1.1% to 25,006.22 and the Shanghai Composite fell nearly 2% to 3,738.32 amid investor worries that regulators may step in after brisk stock gains and amid tighter liquidity in the Chinese market.

U.S. stock markets steadied on Wednesday after technology names, including Alphabet, rallied, helping the S&P 500 climb 0.5% and end a two-day slide that followed a fresh all-time high. The Nasdaq composite rose about 1%, while the Dow Jones Industrial Average dipped 24 points, or 0.1%. U.S. futures were mixed in Asian trading. Oil prices were lower.

Market participants said the recent pullback in the dollar made Asian assets more attractive to foreign investors, supporting equity markets outside mainland China. The dollar’s weakness also followed a softer-than-expected U.S. jobs report, which eased pressure in the bond market and increased market expectations that the Federal Reserve may begin cutting interest rates sooner to bolster growth.

Investors in China have been closely watching signals from regulators and liquidity conditions after rapid price advances in some sectors. The Shanghai Composite’s near 2% decline reflected profit-taking and concern about potential policy steps to cool markets that have experienced sharp gains in recent sessions.

Regional investors also monitored data and corporate earnings, while geopolitical developments and central bank communications continued to influence flows. Analysts said the divergence between mainland China and other Asian markets highlights differing domestic policy dynamics: where stronger risk appetite has lifted equities in Japan, Australia and parts of Asia, worries about intervention and funding conditions have weighed on Chinese shares.

Trading volumes and volatility are likely to remain elevated as market participants parse incoming economic data and central bank commentary in the coming days. For now, the combination of a tech-led rally in the U.S., softer bond yields, and a weaker dollar has provided a supporting backdrop for many Asian markets, even as caution persists over pockets of weakness in China.