Most Asian markets experienced a significant rally on Thursday, driven by stronger-than-expected quarterly earnings reported by Nvidia, which alleviated concerns over inflated AI-driven stock prices. U.S. futures and oil prices also reflected an upward trend, highlighting a shift in investor sentiment.
In Japan, the Nikkei 225 index initially jumped as much as 4.2% before settling into a 2.6% gain at 49,801.81 by early afternoon. This increase was bolstered by a surge in technology stocks, following Nvidia’s announcement of $57 billion in quarterly revenue, substantially exceeding market expectations.
South Korea’s Kospi index rose by 3% to close at 4,047.57, largely attributed to the performances of technology and energy sectors. Investor optimism was further fueled by reports indicating a potential delay in U.S. semiconductor tariffs. Notable gains were observed in major tech firms, with Samsung Electronics rising by 6.1% and SK Hynix increasing by 3.5%.
Chinese markets, however, recorded more modest gains. Hong Kong’s Hang Seng Index incrementally rose 0.1% to 25,867.87, while the Shanghai Composite index saw a 0.4% increase to 3,961.71. Meanwhile, Taiwan’s Taiex climbed by 3.2%. Australia’s S&P/ASX 200 also advanced, gaining 1.2% to close at 8,546.10, driven largely by positive momentum in technology stocks.
The U.S. markets exhibited a volatile trading session on Wednesday, which preceded these developments. The S&P 500 managed to rise 0.4% after fluctuations that included a small loss and a peak gain of 1.1%, breaking a four-day losing streak—the longest for the index in nearly three months. This fluctuation reflected ongoing anxieties regarding excessively high stock prices and speculation surrounding future Federal Reserve interest rate cuts.
The Dow Jones Industrial Average saw a modest gain of 47 points, or 0.1%, while the Nasdaq composite climbed 0.6%. Noteworthy performances included Constellation Energy, which surged 5.3% following a $1 billion loan announcement from the U.S. Department of Energy to assist in restarting its nuclear facility at Three Mile Island. Conversely, Target faced challenges, resulting in a 2.8% decline after it reported lower-than-expected revenue and cautioned about ongoing difficulties throughout the upcoming holiday shopping season.
Nvidia continued to dominate the market’s attention, with its stock rising 2.8% as traders positioned themselves ahead of its quarterly profit report. Following the release, Nvidia surged 5.1% in after-hours trading, solidifying its status as the largest stock on Wall Street, having briefly surpassed a market value of $5 trillion. This achievement renders Nvidia’s stock movements highly influential on the S&P 500, often shaping the index’s direction.
Traders are now closely monitoring the upcoming U.S. jobs report anticipated later in the day. The job market has shown signs of slowing, prompting the Fed to execute two interest rate cuts this year. The prevailing expectation among investors has been for continued cuts, particularly in light of inflation remaining persistently above the Fed’s 2% target. Some Fed officials, however, are beginning to suggest a pause in rate reductions.
On the commodities front, U.S. benchmark crude oil prices increased by 16 cents, reaching $59.41 per barrel. Brent crude, the international standard, also edged up by 16 cents to $63.67 per barrel. The U.S. dollar gained ground against the Japanese yen, trading at 157.32, reflecting expectations that Japan may postpone attempts to mitigate its national debt in favor of increased government spending aimed at stimulating economic growth. Meanwhile, the euro declined slightly to $1.1520.
