Asia-Pacific markets set for higher open, tracking tech rally and rate cut hopes

In Asia, investors will be watching for any spillover optimism in the region's tech stocks, particularly in Japan.

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Commercial and residential buildings are illuminated at dawn in Seoul, South Korea, on Saturday, Oct. 21, 2023. South Korea has prepared a financial support program of 75.

9 trillion won ($56.97 billion) for companies increasing investment in key sectors as well as small businesses struggling with the impact of high interest rates. Bloomberg | Bloomberg | Getty Images Asia-Pacific markets are set for a higher open on Thursday, tracking gains made in the U.



S. as traders saw a Big Tech rally and grew more confident on rate cuts from the Federal Reserve. Chip stocks were among the biggest winners of the U.

S. trading session. U.

S.-listed shares of Taiwan Semiconductor Manufacturing Company added 3.5% after revenue from April to June came in ahead of Wall Street estimates.

Peer chip firm Qualcomm ticked higher by 0.8%, and Broadcom rose about 0.7%.

Artificial intelligence darling Nvidia climbed 2.7%. In Asia, investors will be watching for any spillover optimism in the region's tech stocks, particularly in Japan, where chip related companies have lifted the Nikkei 225 to record highs.

Economic announcements from the region on Thursday will include Japan's May machinery orders, as well as the Bank of Korea's rate decision. Nikkei futures pointed to a stronger open for the market, with the futures contract in Chicago at 42,525 and its counterpart in Osaka at 42,480 compared to the previous close of 41,831.99.

At these levels, the Nikkei would not only be at a fresh high, but also cro.