MANILA, Philippines (AP) — Most Asian shares experienced significant gains on Thursday following Nvidia's stronger-than-expected quarterly earnings report, which eased concerns over inflated AI-driven stock prices. The report highlighted Nvidia's record quarterly revenue of $57 billion, surpassing market expectations and fueling optimism among investors.
U.S. futures and oil prices rose as well. Japan's Nikkei 225 index saw an initial surge of 4.2% before stabilizing at 2.6% higher by early afternoon, reaching 49,801.81. The rally was notably driven by technology stocks, with Nvidia's earnings sparking increased investor confidence. South Korea's Kospi index also climbed by 3%, closing at 4,047.57, led by gains in technology and energy sectors. Major South Korean firms such as Samsung Electronics and SK Hynix saw increases of 6.1% and 3.5%, respectively.
In contrast, Chinese markets showed more modest improvements. Hong Kong's Hang Seng Index edged up 0.1% to 25,867.87, whereas the Shanghai Composite index rose 0.4% to 3,961.71. Taiwan's Taiex posted a stronger gain of 3.2%. Australia’s S&P/ASX 200 also saw a rise of 1.2%, finishing at 8,546.10, led by gains in technology stocks.
On Wednesday, the U.S. stock market exhibited volatility ahead of crucial economic indicators, with the S&P 500 increasing by 0.4% after swinging between gains and losses throughout the day. This marked the end of a four-day losing streak for the index, which had been under pressure due to concerns about elevated stock prices and uncertainty surrounding Federal Reserve interest rate policies.
The Dow Jones Industrial Average managed a slight increase of 47 points, or 0.1%, while the Nasdaq composite climbed 0.6%. One standout performer was Constellation Energy, which surged 5.3% after the U.S. Department of Energy announced a $1 billion loan to assist in restarting its nuclear power plant at Three Mile Island. Conversely, Target experienced a 2.8% drop after reporting quarterly revenue that fell short of analyst expectations, indicating potential challenges ahead for the retailer during the holiday season.
Nvidia's stock emerged as Wall Street's most influential, surging by 2.8% amid speculation about its quarterly earnings, which were released post-market. The company's stock increased by an additional 5.1% in after-hours trading. Nvidia has now become the largest stock on Wall Street, briefly exceeding a market value of $5 trillion, giving it the capacity to significantly influence the S&P 500 index's direction.
To quell criticisms regarding its soaring stock price—down roughly 10% since late last month—Nvidia's ability to consistently deliver robust profits will be crucial, as stock prices typically correlate with a company's profitability over time. Nvidia is viewed as a bellwether within the artificial intelligence technology sector as other companies increasingly utilize its chips to enhance their AI initiatives.
Market watchers also focused on the upcoming September jobs report from the U.S. government, which could impact future Federal Reserve decisions on interest rates. Despite recent cuts to the Fed's main interest rate to stimulate the economy, some officials are indicating potential pauses in rate adjustments due to persistent inflation above the 2% target, as lower rates can exacerbate inflation.
In today’s trading sessions, U.S. benchmark crude oil prices rose 16 cents to $59.41 per barrel, while Brent crude increased by the same margin to $63.67 per barrel. The U.S. dollar appreciated slightly against the Japanese yen, trading at 157.32, amidst expectations for delays in government measures to control Japan's national debt amid economic stimulus from Prime Minister Sanae Takaichi. Conversely, the euro fell to $1.1520 from $1.1538.
