Asia stocks climb tracking Wall St rally; Nikkei hits record high, China GDP beats

Investing.com-- Asian stocks extended sharp gains on Thursday, with Japan’s Nikkei hitting a record high, as investors took cues from a record close on Wall Street and assessed China's stronger-than-expected economic growth figures.

Wall Street closed at record highs overnight, with the S&P 500 and Nasdaq notching fresh peaks. The rally was driven by strong corporate earnings and growing optimism that tensions between the U.S. and Iran could ease through renewed diplomatic efforts.

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Japan's Nikkei hits record high; S.Korea's KOSPI jumps

Japan’s Nikkei 225 climbed 2.6% to its all-time high of 59,624.0 points, while the broader TOPIX index rose 1.3%.

Gains were led by technology and chip-related stocks, as continued optimism around artificial intelligence demand boosted sentiment.

South Korea's KOSPI also advanced more than 2%, just shy of breaching record highs hit earlier this year.

Hopes of progress in U.S.-Iran peace talks have helped stabilize global risk sentiment in recent days, easing concerns over energy supply disruptions and inflation pressures.

However, Washington has imposed a sweeping naval blockade targeting Iranian ports, with U.S. forces enforcing restrictions on vessels entering or leaving Iran and deploying significant naval assets near the Strait of Hormuz.

Singapore's Straits Times Index edged 0.2% lower, while futures tied to India's Nifty 50 traded flat.

China Q1 GDP beats expectations; Australia jobs growth slows

Investor sentiment in Asia was further supported by upbeat economic data from China.

The world’s second-largest economy grew 5.0% year-on-year in the first quarter, beating forecasts for a 4.8% expansion and improving from 4.5% in the previous quarter.

Additional activity data released on Thursday painted a mixed but still resilient picture. China’s industrial production rose 5.7% in March from a year earlier, topping expectations of a 5.4% increase.

Retail sales, a key gauge of consumption, grew 1.7% in March, missing expectations for a 1.9% rise, highlighting continued weakness in domestic demand.

China's Shanghai Composite index rose 0.4%, while the blue-chip Shanghai Shenzhen CSI 300 index added 0.7%.

Hong Kong's Hang Seng index climbed more than 1%.

Meanwhile, Australia’s labour market data showed the unemployment rate held steady at 4.3% in March, while employment rose modestly and full-time job gains remained strong, suggesting underlying resilience despite some moderation in hiring.

Australia's S&P/ASX 200 edged 0.2% lower on Thursday, bucking the larger regional trend.