(Sharecast News) - Asia-Pacific equities rose on Thursday as stronger-than-expected earnings from Nvidia lifted global sentiment toward the artificial intelligence sector and helped drive a rally in regional chip stocks.
Wall Street had advanced overnight ahead of the chipmaker's results, and US equity futures were higher in early Asian hours after Nvidia posted a standout quarter and issued bullish guidance.
"Asia opened the session like a safe harbour after a previous day of heavy swell - the water still churns underneath, but Nvidia's latest forecast has, for now, dulled the sharpest edges of the AI-bubble anxiety that had gripped global markets," commented Stephen Innes of SPI Asset Management.
The company's shares jumped more than 4% in extended trading after reporting fiscal third-quarter earnings and revenue ahead of expectations. Investors were further encouraged by the firm's stronger-than-expected fourth-quarter sales forecast, with chief executive Jensen Huang stating demand for its current-generation Blackwell chips was "off the charts."
Innes said Nvidia "printed another monster quarter, with data-centre revenue surging to a record $51.2bn and a forward guide of $65bn, miles above the Street's already oxygen-thin expectations ... dragging the whole AI complex higher and giving risk-takers one more reason to stay in the cockpit for a potential year-end push."
Tokyo leads regional gains as bond yields steady
Japan led gains across the region, with the Nikkei 225 climbing 2.65% to 49,823.94.
Chip tester Advantest rallied 8.8%, while Sumitomo Pharma and Sompo Holdings rose 10.83% and 10.53% respectively.
The broader Topix added 1.66% to 3,299.57.
In fixed income markets, yields on 30-year Japanese government bonds steadied after earlier touching a record high of 3.375%.
The 20-year yield rose more than three basis points to 2.853%, the highest since 1999, and the 10-year yield gained 3.6 basis points to 1.799%, its strongest level since 2008.
Innes noted that the backdrop for Japan's currency and bond markets remains unusually fragile, saying the yen was suffering "one of its most ignominious 'safe-haven' episodes in modern history," with investors struggling to treat it as a traditional refuge given "fiscal spigots wide open, the BoJ effectively pinned down, and a prime minister sounding like she's auditioning for Trump-era fiscal exuberance."
Mainland markets fall, Hong Kong flat
Chinese markets lagged the regional trend.
The Shanghai Composite slipped 0.4% to 3,931.05, while the Shenzhen Component fell 0.76% to 12,980.82.
Losses were led by Guosheng Shian Technology, down 10.03%, Zhejiang Jiaao Enprotech Stock, which fell 10%, and Henan Dayou Energy, which dropped 9.97%.
In Hong Kong, the Hang Seng Index was broadly flat, inching up 0.02% to 25,835.57.
Techtronic Industries rose 5.36%, Li Ning advanced 4% and China Resources Land gained 2.52%.
China's CATL, the world's largest battery maker, dropped 5.66% following the expiry of a six-month sales restriction on roughly 77.5 million shares held by cornerstone investors.
Against the uneven backdrop, Innes warned that investors were still navigating "a market balancing on a wire stretched between AI euphoria and debt-filled reality," adding that Nvidia's results "may have bought the tape a reprieve, but they haven't rewritten the script."
Korea, Australia share markets move higher
South Korea's Kospi strengthened 1.92% to 4,004.85, driven by sharp gains in transport and industrial names, including Dongyang Express and Chunil Express, which each rose nearly 30%, and Daewon Cable, up 17.96%.
Australia's S&P/ASX 200 gained 1.24% to 8,552.70, supported by a 10.9% jump in Block Inc, a 9.56% rise in Liontown Resources and a 6.8% advance in Pinnacle Investment Management Group.
In New Zealand, the S&P/NZX 50 added 0.84% to 13,439.40, with SkyCity Entertainment up 3.66%, Infratil rising 3.46% and Pacific Edge advancing 2.92%.
Dollar mixed as oil prices firm
In currency markets, the dollar edged up 0.18% against the yen to JPY 157.44, was broadly flat against the Aussie at AUD 1.5435 and slipped 0.19% against the Kiwi to NZD 1.7811.
Oil prices were firmer, with Brent crude futures last up 0.93% on ICE at $64.10 per barrel, and the NYMEX quote for West Texas Intermediate 0.86% higher at $59.95.
Reporting by Josh White for Sharecast.com.
20.24 (0.21%)
27.89
0.00