Asian equities advanced strongly on Thursday as sentiment improved across the region, supported by upbeat earnings and optimistic guidance from Nvidia — developments that helped ease concerns over stretched valuations in the global tech sector.
The positive tone followed a rebound on Wall Street, where U.S. stocks snapped a four-day losing streak. As of 21:16 ET (02:16 GMT), futures on the S&P 500 rose 1.2% and Nasdaq 100 gained 1.7% after Nvidia released a better-than-expected quarterly report.
Japan and South Korea Lead Tech-Driven Upswing
Japanese and South Korean markets were among the strongest performers, with the Nikkei 225 surging 3.2% and the KOSPI climbing 2.6%. Nvidia — now the world’s most valuable listed company — delivered earnings far above forecasts and projected continued strong demand tied to artificial intelligence.
CEO Jensen Huang dismissed worries about an emerging “AI bubble,” emphasizing that demand for Nvidia’s products is broad-based, extending beyond hyperscalers into multiple industry segments. Nvidia shares gained more than 5% in after-hours trading.
The upbeat tone encouraged bargain-hunting across Asia’s tech names, which had been under pressure earlier this week as investors awaited Nvidia’s results.
Many regional firms in Nvidia’s supply chain posted notable gains, with Samsung Electronics, SK Hynix and Advantest rising between 4% and 9%. SoftBank Group also added 3.5%, despite having exited its remaining Nvidia stake in October.
Broader Asian Markets Edge Higher; Australia and Singapore Trade Firmly
In Australia, the ASX 200 climbed 1.2%, supported by mining stocks and local tech names such as Wisetech Global.
Singapore’s Straits Times Index inched up 0.3%, while India’s Nifty 50 futures rose 0.2%.
Mainland Chinese markets saw more modest moves due to their lower weighting of tech stocks, with the CSI 300 and Shanghai Composite each adding around 0.1%.
Regional investors also appeared to set aside growing diplomatic tensions between Beijing and Tokyo following remarks by Japanese Prime Minister Sanae Takaichi regarding Taiwan, which drew a sharp response from China.
Hong Kong Slips as Xiaomi and EV Stocks Extend Losses
In contrast to the broader regional rally, the Hang Seng Index dipped 0.2%, dragged down heavily by Xiaomi.
Xiaomi shares fell another 3%, extending their three-day decline after the company warned of rising chip costs and a challenging outlook for its electric-vehicle division, despite posting solid quarterly earnings.
NetEase also lost about 3% ahead of its earnings release, ranking among the biggest decliners in the index.
Hong Kong’s electric-vehicle stocks remained under pressure as well, amid concerns about weakening demand following the expiration of several government support programs.
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