Asian stocks rose on Thursday, with Japanese shares hitting a record high as markets priced out expectations of more interest rate hikes by the Bank of Japan, while upbeat earnings from Nvidia sparked a rally in South Korean chipmakers.
Broader Asian markets were less upbeat, with Chinese markets steadying from a two-day reopening rally, while Hong Kong fell on weakness in local technology names.
Regional markets took some positive cues from a strong overnight close on Wall Street, as tech shares rose ahead of Nvidia’s earnings, which were released after the market close.
But S&P 500 Futures fell 0.1% by 22:37 ET (03:37 GMT), with NVIDIA Corporation (NASDAQ:NVDA) reversing initial gains to trade mildly lower in after-hours trade. While the chipmaker did post consensus-beating earnings and guidance, some doubts over its inventory levels and Chinese sales remained.
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South Korea’s KOSPI hits record high as Nvidia sparks chipmaker rally
South Korea’s KOSPI was the best performer in Asia on Thursday, surging over 2% to a record high of 6,222.14 points.
While Nvidia dithered in after-hours trade, its earnings still sparked a rally in Asian chipmakers with exposure to the firm. Chief among these were Samsung Electronics Co Ltd (KS:005930) and SK Hynix Inc (KS:000660), which also rallied to record highs.
The two– which are key suppliers of memory chips to Nvidia– were the biggest boosts to the KOSPI, with Nvidia’s earnings pointing to little cooling in AI-fueled demand for advanced chips.
Samsung unveiled its new line of flagship smartphones– the S26– on Wednesday, while SK Hynix said it planned to invest 21.6 trillion won ($15.07 billion) to build a new production facility in South Korea.
Thursday’s gains in the KOSPI also came after the Bank of Korea left interest rates unchanged as widely expected, and hiked its outlook for economic growth on increasing optimism over the country’s chipmaking companies.
Japanese shares hit record highs as rate hike bets cool
Japan’s Nikkei 225 and TOPIX indexes surged to record highs on Thursday, extending gains from the prior session after Tokyo’s nomination of two dovish academics to the Bank of Japan sparked increased doubts over the central bank’s plans to raise interest rates.
The nominations battered the yen, also benefiting Japanese export stocks.
But losses in Japanese tech names, especially chipmakers, saw the Nikkei come off its intraday peaks. Local tech shares had rallied ahead of Nvidia’s earnings, and now faced some profit-taking.
Focus is now on upcoming consumer inflation data from Tokyo, due on Friday, for more cues on inflation. Any further signs of cooling inflation could in turn further dent expectations for more rate hikes by the BOJ.
Broader Asian markets were a mixed bag. Australia’s ASX 200 rose 0.5%, hitting a record high on sustained gains in local mining and bank stocks.
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell slightly, pausing for breath after rallying sharply in the past two sessions. Optimism over increased consumer spending during the Lunar New Year holidays saw both indexes rise sharply earlier this week.
Hong Kong’s Hang Seng index fell 0.5%, with local tech names losing ground after clocking some gains this week. Internet giant Baidu Inc (HK:9888) fell 2.6% ahead of its fourth quarter earnings, with focus squarely on whether the company’s massive AI spending bore fruit.
Singapore’s Straits Times index fell 0.2%, while Thailand’s SET Index jumped 0.8% after an unexpected 25 basis point cut by the country’s central bank on Wednesday.
India’s Nifty 50 index rose 0.3% in morning trade.
Source: Investing