Nvidia Sparks Asia Rally as Tech Stocks Surge Amid AI Optimism

Asian markets opened Thursday on a strong note, propelled by Nvidia’s blockbuster earnings report, while investors kept a close eye on delayed U.S. jobs data. Tech-heavy markets led the charge as optimism around AI chip demand surged.

Japan’s Nikkei 225 climbed 4.2%, South Korea’s Kospi gained 3.3%, and Taiwan’s Taiex index rose 3.4%. Key tech manufacturers benefited significantly: TSMC jumped 4.3%, Samsung Electronics surged 5.1%, SK Hynix added 4.5%, and Tokyo Electron shot up 5.4%.

Nvidia CEO Jensen Huang’s comments on booming AI chip demand from major cloud providers reassured investors and eased fears of an AI valuation bubble. The company also forecasted quarterly revenue far above analysts’ estimates, prompting a wave of buying across the tech sector.

MSCI’s broad Asia-Pacific index outside Japan rose 1.2%, rebounding from a recent one-month low, while S&P 500 e-mini futures climbed 1.3% as Wall Street investors digested Nvidia’s performance.

China’s markets, however, lagged behind. Hong Kong’s Hang Seng Index slipped 0.1%, and mainland stocks ended flat after erasing earlier gains, despite the People’s Bank of China keeping benchmark lending rates unchanged for the sixth month in a row. Concerns about China’s economic recovery continue to weigh on investor sentiment.

The U.S. dollar strengthened, rising 0.2% against major currencies to hover near a two-week high. The yen continued its decline, hitting record lows against the dollar and euro, influenced by Japan’s domestic policy shifts. Meanwhile, Brent crude oil rose 0.5% to $63.80 per barrel, as markets factored in global geopolitical developments.

Cryptocurrencies recovered slightly, with Bitcoin and Ether gaining about 2%, while gold fluctuated, ending slightly lower after a brief uptick.

Global investors remain cautious, closely awaiting U.S. economic data, particularly the delayed September jobs report, which could influence Federal Reserve policy decisions in December.