Asian markets rose on Thursday after better-than-expected earnings from U.S. semiconductor giant Nvidia, with Tokyo's benchmark index hitting a record high.
Nvidia's highly anticipated results beat expectations late Wednesday, with the company reporting record revenue and quarterly profit of $12.3 billion, driven by demand for its AI-powered chips.
After a turbulent day on Wall Street, the company announced record sales of $22.1 billion for the quarter ending in late January and $60.9 billion for the fiscal year.
Analysts had predicted that the company's huge profits would boost Asian markets and send Japan's Nikkei stock average higher than expected. The stock rose 2.2% on the back of a rally in tech stocks, closing at an all-time high of 39,098.68, breaking the record set in 1989.
“As Nvidia goes, so does the market,” Kim Forrest, chief investment officer at Boke Capital Partners, told Bloomberg on Thursday.
The company's earnings report “supports the narrative that AI remains strong for the foreseeable future. This narrative supported the market last year, so why isn't it continuing this year as well?” Forrest added. Ta.
SPI Asset Management's Stephen Innes said Asian stocks had “potential for upside”, buoyed by gains in Nvidia, whose shares rose more than 8% in U.S. after-hours trading.
He noted that the company's first-quarter outlook exceeded analyst expectations.
Stocks in Shanghai and Seoul ended higher, while markets in Hong Kong, Taipei, Bangkok, Manila and Wellington also rose. Sydney was flat.
London markets fell on HSBC on Wednesday after the company's share price fell by more than 8% following the disclosure of a $3 billion impairment charge on its China activities.
Investors were keeping an eye on the minutes of the European Central Bank's latest meeting on euro zone monetary policy, to be published later on Thursday, for clues on when the European Central Bank (ECB) will start cutting interest rates.
In the United States, minutes from the Federal Reserve's policy meeting in January showed that officials had mixed views on the timing of rate cuts, but most members were concerned about acting too soon. Ta.
Traders will likely “ignore the hawkish details of the Federal Reserve's January meeting,” Innes said.
“These minutes made it clear that policymakers were concerned about the potential risk of cutting rates too soon.”
– Main figures around 0715 GMT –
Tokyo – Nikkei Stock Average: 39,098.68 (closing price), up 2.2%
Hong Kong Hang Seng Index: 16,659.14, up 1.0%
Shanghai – Overall: up 1.3% to 2,988.36 (close price)
EUR/USD: up to $1.0845 from $1.0817 on Wednesday
Dollar/JPY: fell from 150.24 yen to 150.17 yen
GBP/USD: up from $1.2630 to $1.2657
EUR/GBP: up from 85.67p to 85.68p
West Texas Intermediate: up 0.4% to $78.21 per barrel
Brent crude: up 0.3% to $83.31 per barrel
New York – Dow: up 0.1% to 38,612.24 points (close)
London – FTSE 100: down 0.7% to 7,662.51 (close)
sko/dhw
