Asian stock markets: Japan hits a record high, Nvidia boosts South Korean chip stocks with a surge

Investing.com — On Thursday, Asian stock markets rose, with Japan’s stock market reaching a record high. The market lowered expectations for further rate hikes by the Bank of Japan, while Nvidia’s strong earnings report sparked a surge in Korean chip stocks.

Other Asian markets performed relatively flatly. China’s markets stabilized after two days of gains since reopening, while Hong Kong’s market declined due to weakness in local tech stocks.

Regional markets received some positive signals from Wall Street’s strong overnight close. Tech stocks rose ahead of Nvidia’s earnings report, which was released after the market closed.

However, S&P 500 futures fell 0.1% at 10:37 p.m. Eastern Time (3:37 a.m. Beijing time), with Nvidia (NASDAQ: NVDA) reversing early gains in after-hours trading and slightly declining. Despite the company’s earnings and guidance surpassing market expectations, concerns remain about its inventory levels and sales in China.

Korea’s KOSPI Hits Record High, Nvidia Sparks Chip Stock Rally

On Thursday, South Korea’s KOSPI index was the best-performing market in Asia, soaring over 2% to a record high of 6,222.14 points.

Although Nvidia’s after-hours performance was hesitant, its earnings report still triggered a rally in Asian chipmakers with business ties to the company. The biggest contributors were Samsung Electronics (KS: 005930) and SK Hynix (KS: 000660), both reaching record highs.

These two companies are key suppliers of Nvidia’s memory chips and have been the main drivers behind the KOSPI’s rise. Nvidia’s earnings showed that demand for AI-driven advanced chips remains robust.

Samsung announced its new flagship S26 series smartphones on Wednesday, while SK Hynix said it plans to invest 21.6 trillion won ($1.507 billion) in building new production facilities in Korea.

The KOSPI’s rise was also supported by the Bank of Korea maintaining interest rates as widely expected and raising economic growth forecasts, boosting optimism among local chip manufacturers.

Japan Stock Market Hits Record High, Rate Hike Expectations Eases

On Thursday, Japan’s Nikkei 225 and Topix indices surged to record highs, continuing the rally from the previous trading day after Tokyo nominated two dovish scholars to the Bank of Japan, raising doubts about the central bank’s rate hike plans.

These nominations weakened the yen, which benefited Japanese export stocks.

However, Japanese tech stocks, especially chip manufacturers, declined, causing the Nikkei to retreat from its intraday highs. Local tech stocks had surged significantly before Nvidia’s earnings report but are now facing some profit-taking.

Market focus now shifts to the upcoming release of Tokyo’s consumer inflation data on Friday for more inflation clues. Any signs of further cooling in inflation could further diminish expectations of rate hikes by the Bank of Japan.

Other Asian markets showed mixed performance. Australia’s ASX 200 rose 0.5%, reaching a record high driven by continued gains in local mining and banking stocks.

China’s CSI 300 and Shanghai Composite indices declined slightly after two days of sharp gains earlier this week, which were driven by optimism over increased consumer spending during the Lunar New Year holiday.

Hong Kong’s Hang Seng Index fell 0.5%, with local tech stocks retreating after some gains earlier in the week. Internet giant Baidu (HK: 9888) dropped 2.6% ahead of its Q4 earnings report, with market focus on whether its large-scale AI investments are paying off.

Singapore’s Straits Times Index declined 0.2%, while Thailand’s SET index jumped 0.8% after the country’s central bank unexpectedly cut interest rates by 25 basis points on Wednesday.

India’s Nifty 50 index rose 0.3% in early trading.

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