Asian Stocks Gain as Japan Hits Record and Nvidia Earnings Lift Chipmakers

Japan and Broader Asia Move on Central Bank and Wall Street Signals

Japanese shares reached a record high on Thursday as markets reduced expectations of additional interest rate increases by the Bank of Japan. The move came amid a generally positive, but uneven, performance across Asian markets.

Regional sentiment was supported by a strong overnight close on Wall Street, where technology stocks rose ahead of Nvidia Corporation’s earnings release. However, S&P 500 futures slipped 0.1% by 22:37 ET (03:37 GMT), and Nvidia shares reversed initial gains to trade slightly lower in after-hours trading.

Nvidia reported earnings and guidance that exceeded market expectations, but questions remained over the company’s inventory levels and its sales in China. These concerns appeared to temper the initial positive reaction in U.S. trading, even as the results signaled ongoing robust demand linked to artificial intelligence applications.

Chinese markets steadied following a two-day rally after reopening, suggesting some consolidation after earlier gains. In contrast, Hong Kong equities declined, weighed down by weakness in local technology names.

South Korea’s KOSPI Hits Record High on Chip Sector Strength

South Korea’s KOSPI was the standout performer in Asia on Thursday, surging more than 2% to a record high of 6,222.14 points. The index was driven by strong gains in major chipmakers with exposure to Nvidia.

Samsung Electronics Co Ltd (KS:005930) and SK Hynix Inc (KS:000660), both key suppliers of memory chips to Nvidia, rallied to record highs and were the largest contributors to the KOSPI’s advance. Nvidia’s earnings indicated continued AI-related demand for advanced chips, supporting sentiment toward these suppliers.

Samsung also unveiled its new S26 flagship smartphone line on Wednesday, adding to focus on its product pipeline. SK Hynix announced plans to invest 21.6 trillion won ($15.07 billion) in a new production facility in South Korea, underscoring capacity expansion in the semiconductor sector.

The KOSPI’s gains followed the Bank of Korea’s decision to leave interest rates unchanged, in line with expectations. The central bank also raised its economic growth outlook, citing increasing optimism surrounding the country’s chipmaking industry.

FAQ

What drove Japanese stocks to a record high?
Japanese shares hit a record high as markets priced out expectations of additional interest rate hikes by the Bank of Japan, improving sentiment toward equities.

How did Nvidia’s earnings affect Asian markets?
Nvidia’s consensus-beating earnings and guidance boosted Asian chipmakers with exposure to the company, particularly in South Korea, even though its stock traded slightly lower in U.S. after-hours trade on concerns about inventory and Chinese sales.

Why did South Korea’s KOSPI outperform other Asian indices?
The KOSPI surged over 2% to a record high of 6,222.14 points, driven by record gains in Samsung Electronics and SK Hynix, positive spillovers from Nvidia’s results, and support from the Bank of Korea’s steady rates and upgraded growth outlook.

How did Chinese and Hong Kong markets perform?
Chinese markets stabilized after a two-day reopening rally, while Hong Kong declined due to weakness in local technology stocks.