Asia report: Markets mixed in aftermath of Huang exit from Nvidia

(Sharecast News) - Asian equity markets finished mixed on Friday as traders weighed the implications of a surprise leadership change at US chipmaking giant Nvidia, with semiconductor stocks experiencing a volatile session.

Gains from Japanese chip equipment makers Advantest and Tokyo Electron managed to keep Tokyo's Nikkei 225 above water, with the benchmark rising 0.5% to register its strongest weekly performance (+6.5%) in five months.

Taiwan's Taiex index also rose 1.4%, bouncing back after recent losses, with blue chip TSMC performing well.

However, losses were recorded on other major markets, with falls of 1.0% on South Korea's Kospi due to weakness in Samsung Electronics and SK Hynix, Hong Kong's Hang Seng trading around 1.5% lower and the Shanghai Composite falling 0.6%.

Technology shares were in focus across the region after Nvidia confirmed that co-founder Jensen Huang had stepped down with immediate effect.

In a statement, the $4trn semiconductor manufacturer said Huang had quit as president, CEO and a member of the board, though did not attribute the exit to this week's revelation that he had two separate extramarital affairs, including one with a suspected Chinese spy.

The unplanned departure raised questions about the future direction of one of the world's largest suppliers of AI chips.

"On the core business front, my base case is that Nvidia's near-term sales and earnings remain resilient, although export restrictions, investigations and any disruption to customer relationships could affect the outlook," said Ipek Ozkardeskaya, senior analyst at Swissquote.

"The Huang scandal does not change the fact that Nvidia offers leading chips and a powerful software ecosystem, which customers need in the middle of an AI boom."

In economic news, China's trade surplus jumped to a record $274bn in dollar terms in the third quarter, up from $194bn in the second quarter and $203bn the year before. Exports were up 25.3% over last year at an all-time high of $1.213bn.