Asian Markets Rally as Seoul's Kospi Surges Over 6 Percent

Asian share markets extended their gains Thursday, riding momentum from Wall Street's rally as investors responded positively to fresh US fiscal stimulus measures. South Korea's Kospi index led regional gains, jumping 6.1 percent to close at 6,858.91 points, recovering from a sharp 5.8 percent decline recorded the previous day amid sector-wide selloffs in artificial intelligence-related stocks.

The rally was sparked by an announcement from the US Treasury Department that it would at least double the size of planned purchases of longer-term government debt. Market analysts noted that increased bond purchases would likely push bond prices higher and bring down yields, easing pressure on equity valuations that has weighed on share prices in recent weeks.

Among Seoul-traded stocks, semiconductor manufacturers led the advance. Samsung Electronics surged 9.7 percent, while memory chipmaker SK Hynix posted a more dramatic 14.1 percent gain following the company's announcement of a significant share buyback programme.

Japan's Nikkei 225 index gained 1.3 percent to 66,178.26, reversing earlier weekly declines. Japanese trade data released Thursday showed the country recorded its third consecutive monthly trade deficit in July, with both imports and exports reaching record levels, signalling robust demand despite economic headwinds.