Japan’s Nikkei share average surged close to an all-time high on Thursday following unexpectedly robust revenue forecasts from U.S. chip designer Nvidia, which lifted Asian tech stocks. However, the regional market sentiment was tempered by a retreat in Chinese stocks from multi-month highs, amid Beijing’s efforts to boost market confidence.
The Nikkei 225 share average climbed as high as 38,924.88, nearing its peak for the first time since January 1990, during the so-called bubble economy era. By midday, it was up 1.7% from Wednesday, settling at 38,913.84. The index’s all-time high stands at 38,957.44, set on December 29, 1989.
Meanwhile, MSCI’s broadest index of Asia-Pacific shares outside Japan recorded a modest 0.07% increase, with Taiwan’s stock benchmark rising by 0.71%, but losses in Hong Kong counteracted these gains. The Hang Seng index slipped by 0.41%, potentially ending a seven-day winning streak, while a subindex of tech shares dropped by 0.84%.
Despite this, U.S. stock index futures signaled gains after a mixed session on Wednesday. S&P 500 futures surged by 0.75%, and tech-focused Nasdaq futures jumped by 1.39%, following Nvidia’s announcement of a roughly 233% surge in quarterly revenue, leading to a 10% increase in its shares after hours.
The Nikkei’s significant rise this year, approximately 16%, mirrors the gains seen in the S&P 500 and Nasdaq, both up around 5%, largely driven by high expectations for artificial intelligence (AI), with Nvidia’s chips at the forefront of this technological boom.
“Nvidia’s earnings beat boosted sentiment and eased concerns over stretched valuations, providing room for the AI theme to continue to drive markets,” noted analysts at Saxo Markets in a research note.
However, the regional market sentiment was slightly dampened by the retreat in Chinese stocks and concerns over long-term U.S. bond yields, which hovered near three-month highs. The dollar, meanwhile, continued its retreat from a three-month high reached last week, with the U.S. dollar index remaining flat at 103.99.
In the commodities market, oil prices saw a slight increase, adding to gains from the previous session. U.S. West Texas Intermediate crude futures rose to $78.08 a barrel for the prompt month, while Brent crude for April delivery ticked up to $83.17 a barrel.
Overall, the global market continues to navigate through various economic and geopolitical factors, with investors closely monitoring developments for their potential impact on market dynamics.
