Asian markets delivered strong gains for the third consecutive day, with MSCI's broadest index of Asia-Pacific shares excluding Japan rising 0.7% after Nvidia's exceptional earnings report beat estimates. South Korea's Kospi led regional gains, jumping 1.22% to 6,894.25 as the benchmark for AI-linked investment, while Taiwanese shares rose 0.9% and the Nikkei 225 slid 0.4%. According to Business Standard, the positive momentum was driven by Nvidia's strong quarterly performance, which reassured investors that spending on AI infrastructure remained robust and eased concerns that the sector's investment boom had begun to fade. Hang Seng futures bucked the trend, slipping 0.2%, while the Japanese yen held steady at 159.19 per dollar and the offshore yuan traded largely flat at 6.7210 per dollar. The South Korean won strengthened 0.63% to 1,377.6 per dollar on the onshore settlement platform, compared with its previous close of 1,386.3.
The rally was primarily driven by Nvidia's exceptional performance, with the chipmaker's shares jumping 4.7% in after-hours trading after reporting quarterly revenue of $96.22 billion, more than double the year-ago figure and adjusted earnings of $2.22 per share, also ahead of market expectations. As reported by Business Standard, the forecast reassured investors that spending on AI infrastructure remained strong, easing worries that the sector's investment boom had begun to fade. Data centre revenue reached $89 billion, more than doubling from a year earlier, while the company forecast third-quarter revenue of $108 billion, plus or minus 2%, above the average Wall Street estimate of around $104.2 billion. Nvidia forecast a 70% increase in revenue for its next fiscal year, highlighting continued strong demand for artificial intelligence computing, though the company warned that shortages of memory components could constrain the pace of expansion. S&P 500 e-mini futures rose 0.4% following the earnings announcement, with Pepperstone Group's Chris Weston noting that "the business is in absolutely rude health" and describing it as a "really bullish story." Marvell Technology and Sandisk also climbed in after-hours dealing bolstered by Nvidia's guidance, with the strong performance coming as markets moved in a narrow range ahead of the earnings report.
China's mainland markets showed strong performance with the CSI300 index gaining 0.5% by lunch break and the Shanghai Composite Index advancing 0.6%, while Hong Kong's Hang Seng Index slipped 0.4%. According to The Economic Times, technology and hardware manufacturing stocks led gains on mainland exchanges, with the 5G Communication Index jumping 4.3% and artificial intelligence shares rising 3.5%. The tech-heavy STAR50 Index also advanced 3.5%, reflecting the growing influence of global AI investment trends on Chinese equities. Chinese memory-chip maker CXMT rose 5.3%, while Shengyi Technology, which supplies electronic base materials, surged 10%. Optical-fibre producers also gained significantly, with Yangtze Optical Fibre and Cable hitting its 10% daily trading limit. Non-ferrous metal stocks extended their recent rally, rising 1.7%, led by gold miners, with Hunan Gold climbing 10% to its daily limit. AI developer Minimax gained 3.6% after reporting a nearly four-fold increase in first-half revenue, while Hong Kong-listed Zhongji Innolight rose 5% after being added to the Stock Connect trading list.
South Korean chipmakers led the market rally with Samsung Electronics rising 1.43% and SK Hynix gaining 2.37% following Nvidia's strong AI demand forecasts. According to Reuters, battery maker LG Energy Solution advanced 3.42% as the positive sentiment spread across the semiconductor sector. The upbeat outlook provided significant support to South Korean chip stocks, with 352 stocks advancing and 501 declining out of 905 traded stocks. Foreign investors were net buyers of 73.3 billion won ($53.21 million) worth of shares, indicating positive international sentiment toward Korean equities. POSCO Holdings gained 3.20%, while Samsung BioLogics fell 0.50%, and Hyundai Motor and Kia declined 1.96% and 1.52% respectively. September futures on three-year Treasury bonds fell 0.11 point to 103.21, while the yield on the most liquid three-year Korean Treasury bond rose 3.7 basis points to 3.854% and the benchmark 10-year yield increased 3.9 basis points to 4.311%.
The Bank of Korea delivered its second consecutive rate increase, raising the benchmark interest rate by 25 basis points to 3.00% as widely expected, with inflation remaining above target and financial stability risks persisting. According to Reuters, the central bank also raised its growth forecast for this year to 3.3%, from 2.6% projected in July, representing a significant upward revision. Governor Shin Hyun-song was scheduled to hold a news conference at 0210 GMT, with investors expected to closely assess the outlook for further monetary tightening. The policy decision and subsequent guidance remained a key focus for investors, as the central bank's stance on future rate movements would influence market sentiment and currency movements.
