Asian Stocks Mixed as Nvidia Boosts AI Hype and Rate Fears Linger
Asian Stocks Mixed Amid Rate Fears and Nvidia Surge
Asian stocks exhibited a mixed performance on Thursday, with the technology sector experiencing gains following positive signals from AI giant Nvidia. However, this surge was counteracted by persistent fears of high U.S. interest rates. Meanwhile, Japan’s Nikkei 225 benchmark reached a record high.
Weak Lead-In from Wall Street
Regional stocks took a weak lead-in from Wall Street after the Federal Reserve indicated that the bank was in no hurry to begin cutting interest rates. Several Fed officials also echoed this sentiment in separate addresses.
Nvidia Surges, Boosting AI Hype
NVIDIA Corporation surged as much as 10% in aftermarket trade after its quarterly earnings beat estimates and the chipmaker forecast stronger-than-expected revenue in the coming quarter.
Asian Chip Stocks Surge Amid Nvidia Momentum
The gains in Nvidia had a spill-over effect on Asian chipmaking stocks, as the strong results and guidance highlighted improved demand from artificial intelligence development.
Japan’s Nikkei 225 Hits Record Highs
Gains in heavyweight technology stocks propelled Japan’s Nikkei 225 to a record intraday high of 39,001.50 points, surpassing a 1989 peak before the bursting of Japan’s speculative bubble in the 1990s.
Broader Asian Stocks Exhibit Weakness
Broader Asian stocks were largely weaker, as a Chinese recovery rally slowed and the prospect of higher U.S. rates dented risk appetite.
Chinese Stocks Muted After Rally
Chinese stocks were muted on Thursday after a seven-session rally, with the rebound seemingly driven by strict government intervention.
South Korea and Australia Stocks
In South Korea, the KOSPI rose 0.3%, while Australia’s ASX fell 0.1% after coming close to record highs, with heavyweight miner Rio Tinto Ltd among the top drags on the index after it reported a 12% decline in its 2023 profit.
India’s Stock Futures Point to Positive Open
Futures for India’s stock index pointed to a positive open, with heavyweight local tech stocks likely to track gains in their regional peers.
