TOKYO (AP) — Asian shares experienced mostly upward trading on Thursday, buoyed by a rally on Wall Street following lucrative profit reports from major corporations. The Nikkei 225 index in Japan rose nearly 0.2%, reaching 38,888.04. Australia's S&P/ASX 200 saw a more significant increase of 1.1%, climbing to 8,507.60. In South Korea, the Kospi edged up by 0.7% to 2,526.21, whereas Hong Kong's Hang Seng grew by 0.2% to 20,640.73. Meanwhile, the Shanghai Composite also added 0.6%, settling at 3,248.34.

In Japan, the stock of Honda Motor Co. fluctuated after gaining significantly the previous day due to reports surrounding its potential formation of a joint holding company with Nissan Motor Corp. Nevertheless, it was revealed that these discussions could unravel. As a result, Honda's stock trimmed some of its earlier gains, while Nissan's shares rebounded, trading higher amid continuing media speculation, although no official confirmations were given by either company.

On Wall Street, the S&P 500 increased by 0.4% after a strong performance from major companies. The Dow Jones Industrial Average surged by 317 points, equivalent to a 0.7% gain, bringing it to 44,873.28. The Nasdaq composite also contributed to this upward trend with a modest increase of 0.2%.

Notably, the toymaker Mattel saw its shares soar by 15.3% after outperforming analysts’ profit forecasts for the latest quarter. The strong performance of its Hot Wheels brand compensated for weaker demand in Barbie and other doll lines. Additionally, Mattel provided a forecast for the upcoming year that exceeded analysts’ projections, further boosting investor confidence.

Similarly, Amgen's stock experienced a rally of 6.5%, making it one of the primary contributors to the gains on the S&P 500. The pharmaceutical company reported a stronger-than-expected profit for the latest quarter, partially attributed to increased sales of its cholesterol-lowering treatment, Repatha.

Conversely, Alphabet, Google's parent company, saw a sharp decline of 7.3%, despite reporting stronger profits than analysts anticipated. Investors reacted negatively to the company's slowing growth in its cloud division, which underperformed against revenue forecasts. Furthermore, Alphabet's plan to allocate $75 billion for investments this year, significantly higher than analysts expected, added to investor concerns.

Similarly, Advanced Micro Devices (AMD) fell by 6.3% despite exceeding profit expectations for the latest quarter. Analysts described AMD's results as solid but expressed disappointment over the lack of details provided by CEO Lisa Su regarding expectations for the firm's AI product performances.

Market participants are also grappling with uncertainty surrounding the global economy, particularly due to President Donald Trump's tariffs. After causing financial market disruptions earlier in the week, fears of a potential global trade war have somewhat subsided following Trump's announcement of 30-day reprieves on tariffs concerning Mexico and Canada. This development sparked optimism among traders that Trump views tariffs as negotiation tools rather than a long-term strategy.

However, Trump's administration continues to apply tariffs on Chinese goods, with expectations of potential automotive tariffs from the European Union as well. Such measures could lead to a temporary spike in inflation, potentially raising a closely monitored inflation metric to 2.6% by December, above the Federal Reserve's 2% target.

The looming concern affecting Wall Street is the possibility of inflation pressures preventing the Federal Reserve from reducing interest rates this year, following the initiation of rate cuts in September to stimulate the economy and support the job market. Yields in the bond market fell as reports indicated weaker-than-expected growth in mining, finance, and other U.S. services sectors. The ten-year Treasury yield decreased to 4.42% from 4.52% late the previous day.

Overall, the S&P 500 saw an increase of 23.60 points, closing at 6,061.48. The Dow Jones Industrial Average raised by 317.24 points to settle at 44,873.28, whereas the Nasdaq composite added 38.31 points, reaching 19,692.33.

In commodity trading, benchmark U.S. crude oil prices rose by 19 cents, reaching $71.22 a barrel, while Brent crude, the international standard, climbed by 11 cents to $74.72 a barrel.

In currency trading, the U.S. dollar experienced a slight decrease against the Japanese yen, falling to 152.23 yen from 152.55 yen. The euro traded at $1.0394, down from $1.0407.