Asian stocks experienced a rise on Thursday, with technology shares leading the way after an overnight rally in market darling Nvidia. Japanese markets, in particular, soared as a soft reading on producer inflation undermined hawkish signals from the Bank of Japan. Japan’s Nikkei 225 and TOPIX indexes were the best performers in Asia, with gains between 2% and 3%. The rally in tech stocks also supported Japanese markets, with a 4.7% rally in Taiwan’s TSMC boosting the Taiwan Weighted index.
Regional Technology Stocks Rally
Regional technology stocks rallied after their U.S. counterparts, following comments from NVIDIA Corporation CEO Jensen Huang about strong artificial intelligence demand. The gains were largely focused on chipmakers, with companies such as SK Hynix Inc and Advantest Corp seeing significant increases in their stock values. The tech-heavy bourses in Asia also logged relatively stronger gains, with South Korea’s KOSPI rising by 1.2%.
While Asian markets saw a surge in technology stocks, U.S. stock index futures were relatively flat in Asian trade. This was due to a stronger-than-expected reading on consumer inflation, which provided a more cautious outlook on potential interest rate cuts. Markets were anticipating a 25 basis point rate cut by the Federal Reserve the following week. The softer inflation data in Japan somewhat contradicted recent comments from BOJ officials about the need for further interest rate hikes.
Despite the overall positive trend in Asian markets driven by technology stocks, there were divergent performances across different countries. Countries such as Japan and South Korea saw significant gains, while Australia’s ASX 200 added a more modest 0.7%. China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes, along with Hong Kong’s Hang Seng, lagged behind and moved within a flat-to-low range.
The impact of technology news was not limited to Asian markets, as evidenced by Samsung Electronics Co Ltd rising by 1% after reports of global job cuts of up to 30% of roles in some divisions. This highlights how developments in the tech industry can have a global ripple effect on stock markets and investor sentiment.
The performance of Asian markets, particularly driven by technology stocks, showcased a mixed picture on Thursday. While some countries experienced significant gains, others lagged behind. The implications for future interest rate decisions and the overall global impact of tech-related news are key factors to monitor for investors in the coming weeks.