Tech Surge Leads Gains: Asian Markets Rise on Nvidia Momentum
Asian stocks saw broad gains on Thursday, led by technology shares that tracked the strong performance of Nvidia in the U.S. overnight. Nvidia’s CEO Jensen Huang highlighted strong demand for artificial intelligence, sparking optimism among investors and lifting chipmakers across the region.
Japan Outperforms: Softer Producer Inflation Fuels Market Rally
Japan’s Nikkei 225 and TOPIX indexes were the standout performers, rising between 2% and 3%. The rally was fueled by a weaker-than-expected producer price index (PPI) inflation reading for August, which contrasted with recent hawkish comments from Bank of Japan (BOJ) officials. This softer inflation print reduced the immediate pressure on the BOJ to raise interest rates further, despite ongoing discussions about potential rate hikes to combat inflationary risks.
Mixed U.S. Signals: Futures Flat Amid Inflation Concerns
Despite the positive sentiment in Asia, U.S. stock index futures were flat during Asian trading hours as markets digested a stronger-than-expected consumer inflation reading. The data raised concerns about the likelihood of future interest rate cuts, with traders now anticipating a more modest 25 basis point reduction from the Federal Reserve next week.
Tech Stocks Drive Regional Gains: Chipmakers Lead the Charge
The rally in Asian tech stocks was bolstered by chipmakers, following Nvidia’s 8% overnight surge. South Korea’s KOSPI index rose 1.2%, while Taiwan’s TSMC saw a 4.7% jump, boosting the Taiwan Weighted index. Nvidia suppliers like SK Hynix and Advantest Corp. climbed 5.4% and 7%, respectively, underscoring the sector’s strength.
Samsung Plans Job Cuts: Shares Rise on Cost-Cutting Measures
Samsung Electronics rose 1% after reports surfaced that the company is planning significant global job cuts of up to 30% in certain divisions, aiming to streamline operations amid broader economic uncertainties.
Subdued Gains Beyond Tech: Broader Markets Show Modest Increases
Beyond the tech sector, gains in Asian markets were more restrained. Australia’s ASX 200 added 0.7%, while futures for India’s Nifty 50 indicated a cautious open after the index pulled back on Wednesday.
Chinese Markets Lag: Trade Concerns Weigh on Sentiment
Chinese stocks, including the Shanghai Shenzhen CSI 300 and the Shanghai Composite, along with Hong Kong’s Hang Seng, underperformed as sentiment was dampened by news that U.S. lawmakers are considering additional trade restrictions on China, adding another layer of uncertainty to the market outlook.
