06:41 AM EDT, 10/16/2025 (MT Newswires) -- Asian stock markets largely tracked higher on Thursday, as traders weighed political developments in Tokyo and again favored tech shares. Trade tensions pressured Hong Kong trading floors.

Shanghai and Tokyo finished in the green, while Hong Kong edged lower. Other regional exchanges largely concluded positively.

South Korea's KOSPI index rose 2.5% and struck another fresh all-time zenith, after US Treasury Secretary Scott Bessent made positive remarks regarding a trade deal between Seoul and Washington.

In Japan, the Nikkei 225 opened higher and rose to the close, finishing up 1.3% on prospects that the ruling Liberal Democratic Party (LDP) will retain control of the national government.

The benchmark Nikkei 225 rose 605.07 to 48,277.74, as gaining issues outnumbered losers 138 to 84.

Leading the upside was tech-financier SoftBank, up 8.6%, while consultancy BayCurrent declined 8.5%.

In economic news, Japan's index of tertiary industry (services) activity rose 1.2% on year in August, but declined 0.4% from July, reported the Ministry of Economy Trade and Industry (METI).

In other news, the LDP and an opposition party held coalition talks that could pave the way for LDP leader Sanae Takaichi to become Japan's next prime minister, reported The Mainichi newspaper.

In Hong Kong, the Hang Seng Index opened evenly but declined in the afternoon, closing down 0.1% as traders weighed ongoing trade tensions between Beijing and Washington.

The broad gauge Hang Seng fell 22.09 points to 25,888.51 although gaining issues outnumbered losers 46 to 40. The Hang Seng TECH Index lost 1.2% on the day, but the Mainland Properties Index rose 0.4%.

Leading the upside was New Oriental Education and Technology, gaining 8.9%, while smartphone- and automaker Xiaomi declined 3.6%.

On the mainland, the Shanghai Composite rose 0.1% to 3,916.23.

On the other regional exchanges, the Taiwan TWSE inclined 1.4% to new apex; the Australian ASX 200 inclined 0.9%; the Singapore Straits Times Index fell 0.2%, and the Thai Set inclined 0.4%. In late trading in Mumbai, the Sensex was up 1%.