A view of Tokyo’s skyline on July 27, 2021 in Tokyo, Japan.
Julian Finney | Getty Images Sport | Getty Images
Asia-Pacific markets rose Thursday, as chip shares rallied after Nvidia‘s stronger-than-expected earnings and bullish forecast appeared to reinforce confidence in the global AI trade and boost the broader market.
Shares of the chip giant jumped more than 4% in extended trading after its fiscal third-quarter earnings beat earnings and revenue expectations. The AI chip darling also gave a stronger-than-expected fourth-quarter sales forecast, with CEO Jensen Huang saying demand for its current-generation Blackwell chips is “off the charts.”
Japan’s benchmark Nikkei 225 index jumped 3.7% in early trading, while the Topix index added 1.67%.
Chip-related stocks rallied on the index as investors cheered Nvidia’s quarterly report, with tech conglomerate SoftBank skyrocketing as much as 8%, semiconductor equipment maker Tokyo Electron soaring nearly 7%, Lasertec adding 5.6%, and chipmaker Renesas Electron trading 4.8% higher.
Yields on 30-year Japanese government bonds rose nearly 3 basis points to hit a record high of 3.375%. Those on the 20-year government bond rose more than 3 basis points to 2.853%, the highest level since 1999, while the 10-year bond yield rose 3.6 basis points to 1.799%, the highest level since 2008.
Japan 30-Year Treasury
South Korea’s Kospi index advanced 2.63%, and the small-cap Kosdaq was up 1.75%. The upbeat investor sentiment also extended to South Korea as index heavyweights, memory chip makers SK Hynix and Samsung Electronics, added more than 6% and 3.3%, respectively.
Australia’s ASX/S&P 200 rose 1%.
Hong Kong’s Hang Seng Index rose 0.69% at the open, while the mainland CSI 300 was flat.
The Hong Kong-listed shares of China’s CATL, the world’s largest battery maker, fell more than 5% at the open as investors looked to lock in profits following the expiry of a six-month restriction on the sales of about 77.5 million shares for early stakeholders. The cornerstone investors include Sinopec HK, Kuwait Investment Authority and UBS Asset Management, according to the company’s prospectus.
Taiwan’s Taiex was up as much as 2.6%. Shares of Nvidia chips manufacturer TSMC on the index advanced more than 4%, while Hon Hai Precision Industry — also known as Foxconn, and supplier to Nvidia — climbed 2.84%.
India’s Nifty 50 rose 0.18% at the open, while the Sensex index was up 0.19%.
U.S. equity futures were higher in early Asian hours after Nvidia’s upbeat guidance, which likely lifted investor sentiment around the AI trade, following recent sessions that reflected fears about elevated valuations, debt financing, and potential chip depreciation.
“Nvidia’s numbers remain extremely strong now, but there are inevitably questions whether Huang’s company has already reached its high-water mark in terms of growth and market share,” said David Russell, TradeStation’s global head of market strategy.
Overnight, the S&P 500 gained 0.38% to close at 6,642.16, snapping a four-day losing streak, while the Nasdaq Composite advanced 0.59% to settle at 22,564.23. The Dow Jones Industrial Average climbed 47 points, or 0.1%, to finish at 46,138.77.
— CNBC’s Sean Conlon and Pia Singh contributed to this report.
