Asian stocks rose on Thursday after US technology firms outlined significant capital spending plans that are likely to benefit chipmakers in the region while the escalating war in the Middle East sent oil prices to six-week highs.

In Hong Kong, the benchmark Hang Seng Index opened up 73 points, or 0.3 percent, at 24,966 and was 208 points, or 0.84 percent, higher at 25,100 in mid-morning trading.

The tech index was up nine points, or 0.2 percent, at 4,677 while the China enterprises index up 15 points, or 0.19 percent, at 8,266.

On the mainland, the benchmark Shanghai Composite Index opened up 0.03 percent, at 3,868.

The Shenzhen Component Index opened 0.39 percent higher at 14,116 while the ChiNext Index was up 0.84 percent at 3,596.

Rising oil prices have also renewed inflationary concerns, pushing short-term US Treasury yields to 17-week highs as traders wager the Federal Reserve may need to raise interest rates sooner rather than later.

Brent crude futures rose two percent to US$96 per barrel in early trading after the United State launched a new round of strikes on Iran and Yemen's Houthis targeted oil tankers in the Red Sea, widening the scope of a conflict that has cast a shadow on the global markets.

Thierry Wizman, global FX & rates strategist at Macquarie Group, said the rise in oil prices had renewed concern about the impact on global growth.

Nearly five months of war have depleted global stockpiles and stoked inflation worldwide, with analysts warning the closure of both the Strait of Hormuz and Bab el-Mandeb in the Red Sea would disrupt shipping routes for more than a quarter of the world's oil and gas.

"The worries about global growth are well-placed, we think," said Wizman.

Earnings from Alphabet and Tesla showed no slowdown in the vast spending on AI infrastructure.

The search giant raised its capital expenditure plans for the year and now expects to spend between US$195 billion and US$205 billion.

A lot of the spending is expected to boost Asian chipmakers.

That helped South Korea's Kospi open up 165 points, or 2.44 percent, at 6,963, led by SK Hynix and Samsung Electronics.

The benchmark put on more gains after that to be 214 points, or 3.16 percent, at 7,012 in late-morning trading.

In Tokyo, the Nikkei opened up 305 points, or 0,.46 percent, at 66,421 before adding to the gains to be 403 points, or 0.61 percent, at 66,519 at one stage before noon. (Reuters/Xinhua)


Edited by Tony Sabine