Asian Stocks Surge as Nvidia Results Lift Tech, Samsung Jumps on Wage Deal

Tech Rally Drives Regional Markets Higher

Asian stock markets rallied after Nvidia reported stronger-than-forecast quarterly earnings and issued optimistic revenue guidance, reinforcing expectations for sustained spending on artificial intelligence infrastructure. Investors interpreted the results as confirmation of resilient demand for high-end AI processors and data center hardware, boosting chip-related stocks across the region.

South Korea’s KOSPI jumped 7.9% to 7,777.27 points in its strongest session in months. Samsung Electronics gained nearly 8% after the company and its labour union reached a last-minute tentative wage agreement, suspending plans for an 18-day strike involving nearly 48,000 workers. The deal eased worries over potential disruptions to global memory chip supplies amid elevated AI-related demand.

Japan’s Nikkei rose 3.7%, while the broader TOPIX index increased 2.1%. Australia’s S&P/ASX 200 advanced 1.6%, India’s Nifty 50 added 0.6%, and Singapore’s Straits Times Index edged 0.3% higher. Chinese equities lagged the broader regional trend, with the Shanghai Shenzhen CSI 300 up 0.6% and the Shanghai Composite little changed. Hong Kong’s Hang Seng Index was also muted.

Macro Data and Geopolitics Shape Sentiment

Investor confidence was additionally supported by signs of easing geopolitical risk. Some oil tankers resumed passage through the Strait of Hormuz, reducing immediate concerns over major energy supply disruptions. U.S. President Donald Trump said the administration was in the “final stages” of negotiations with Iran, which helped calm market fears over Middle East tensions.

Regional economic data also influenced trading. In Australia, the unemployment rate rose to 4.5% in April, the highest level since late 2021, as employment unexpectedly declined. The softer labour data strengthened expectations that the Reserve Bank of Australia could pause further interest rate increases.

In Japan, exports recorded strong growth in April. However, business activity data indicated the services sector slipped back into contraction even as manufacturing growth remained steady, underlining the fragility of the country’s recovery. Japan’s factory activity expanded for an 11th consecutive month in May, although the pace of growth slowed amid softer external demand and rising input costs.

On Wall Street, major U.S. indices closed higher on Wednesday ahead of Nvidia’s results. U.S. stock index futures were little changed near the flatline in early Thursday trade after recording losses during the early Asian session.

FAQ

What triggered the rally in Asian technology shares?
The rally was mainly driven by Nvidia’s stronger-than-expected quarterly earnings and optimistic revenue guidance, which reinforced confidence in sustained AI-related spending and boosted chip-related stocks across the region.

Why did Samsung Electronics’ share price jump?
Samsung Electronics climbed nearly 8% after the company and its labour union reached a tentative wage agreement that suspended plans for an 18-day strike by almost 48,000 workers, easing concerns over potential disruptions to memory chip supply.

How did Australian economic data affect its stock market?
Australia’s S&P/ASX 200 rose 1.6% after data showed the unemployment rate increased to 4.5% in April and employment fell, developments that strengthened expectations the Reserve Bank of Australia could pause further interest rate hikes.

Why did Chinese markets underperform regional peers?
Chinese markets lagged as investors remained cautious about the outlook for the property sector and the pace of any additional policy support from Beijing, leaving the Shanghai Composite flat and the CSI 300 up only 0.6%.