Asian stocks rally as Nikkei 225 rises on Oracle-led AI optimism

• Asian stocks gain ground as soft US PPI data firmed a Fed rate cut in September.
• Oracle's forecast that AI will drive demand for its cloud services, which lifted AI-linked shares in Asia.
• The Nikkei 225 receives support as exports accelerate to the US ahead of new 15% tariffs.

Asian stocks rise on Thursday, following Wall Street's overnight rally, driven by softer-than-estimated US Producer Price Index (PPI) data and a strong forecast from Oracle. Traders now await the August US Consumer Price Index (CPI), due later in the day, which could strengthen expectations for a larger 50-basis-point Fed rate cut next week.

Japan's Nikkei 225 rises 0.66% to trade near 44,100 at the time of writing, while South Korea's KOSPI advances 0.40% to move above 3,300, and Hong Kong's Hang Seng steadies near 26,200. Additionally, China's Shanghai Composite advances 1.05% to reach 3,850, while the Shenzhen Component gained 2.60%, rising to nearly 12,900.

Asian markets rally as tech stocks advance, boosted by Oracle's forecast that AI will drive demand for its cloud services. The momentum lifted AI-linked shares across the region, with SoftBank jumping 9% in Tokyo after Oracle surged 36%, its biggest one-day gain since 1992, bringing the 48-year-old firm close to a $1 trillion valuation, per Reuters.

The Nikkei 225 received support after surveys showed business sentiment in Japan improved in the third quarter, boosted by a rebound in exports as firms accelerated shipments to the US ahead of new 15% tariffs.

Chinese markets surge, including Hang Seng rebounds toward four-year highs as deflationary pressures linger in China. Additionally, August consumer prices recorded the steepest decline since February, and producer prices contracted for a 35th straight month. Shanghai Composite and Shenzhen Component surge as Chinese technology stocks rallied on AI optimism.

South Korea's KOSPI extends gains to a new record high, led by large-cap tech and semiconductor stocks tracking Wall Street's AI-fueled rally. Hanwha Aerospace rose 3.31% and SK Hynix gained 1.97%, while Samsung Electronics surged 0.41% at the time of writing.