Asian markets were mostly higher on Thursday, with Tokyo’s benchmark index hitting a record high after better-than-expected earnings from tech giant Nvidia.
U.S. chip giant 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 could boost Asian markets and send Japan’s blue-chip Nikkei stock average higher than expected. Stocks rose as much as 2%, or more than $39,000, in afternoon trading as tech stocks rebounded, breaking a record set in 1989.
“As Nvidia goes, so does the market,” Kim Forrest, chief investment officer at Boke Capital Partners, told Bloomberg earlier 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 rose in Hong Kong and Shanghai, as did Seoul, Taipei, Bangkok, Manila and Wellington. 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 0430 GMT –
Tokyo – Nikkei Stock Average: 38,959.81, up 1.8%
Hong Kong Hang Seng Index: 16,528.01, up 0.2%
Shanghai – Overall: up 0.5% to 2,965.48
EUR/USD: up from $1.0817 on Wednesday to $1.0828
USD/JPY: Increased from 150.24 yen to 150.32 yen
GBP/USD: up from $1.2630 to $1.2639
Euro/Pound: 85.67 pence flat
West Texas Intermediate: up 0.2% to $78.08 per barrel
Brent crude: up 0.2% to $83.21 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)
Sco/pound