BY COMFORT OGBONNA
U.S. stock futures moved lower early Thursday, even as most Asian markets advanced, after stronger-than-expected earnings from chip giant Nvidia helped calm investor anxiety surrounding the sustainability of the artificial intelligence boom.
In Japan, the Nikkei 225 briefly surged past the historic 59,000 level for the first time before trimming gains to close 0.2% higher at 58,715.33. The milestone reflected continued optimism in technology and export-oriented shares, particularly those linked to AI and semiconductor production. Shares of SoftBank Group climbed 3.5%, supported by its heavy exposure to artificial intelligence investments. Meanwhile, chip equipment maker Tokyo Electron slipped 2.8%, as investors rotated among tech names following recent rallies.
Market sentiment in Tokyo also received a boost after Prime Minister Sanae Takaichi appointed two economists seen as dovish to the board of the Bank of Japan. The move signaled a potential continuation of accommodative monetary policy, reinforcing expectations that borrowing costs may remain low for longer, a backdrop that has supported equities throughout the year.
South Korea’s Kospi jumped 2.3% to 6,222.29, extending its powerful rally. The benchmark index had already crossed the 6,000 threshold for the first time a day earlier and is now up 44% since the beginning of the year. The rebound follows a turbulent period marked by political instability that culminated in former President Yoon Suk Yeol receiving a life sentence. Investors have since returned to Korean equities, encouraged by stabilizing governance and strong corporate earnings.
Technology heavyweights led the gains in Seoul. Samsung Electronics surged 5.5%, while memory chipmaker SK Hynix rose 2.5%, both benefiting from renewed enthusiasm around global semiconductor demand tied to AI infrastructure.
Elsewhere in Asia, Hong Kong’s Hang Seng slipped 0.4% to 26,656.29, reflecting some profit-taking after recent strength. Mainland China’s Shanghai Composite edged down 0.1% to 4,144.08 amid cautious trading.
In Australia, the S&P/ASX 200 gained 0.5% to 9,174.50, supported by mining and financial shares. Taiwan’s Taiex added 0.2%, while India’s Sensex rose 0.3%, continuing a broader trend of resilience across emerging Asian markets.
At the center of global market attention was Nvidia, whose results once again underscored the scale and speed of the AI-driven transformation reshaping the technology sector. The company, currently the largest constituent of the S&P 500 and widely regarded as the world’s most valuable publicly traded company, reported quarterly revenue of $68 billion, a 73% increase from a year earlier. It also projected $78 billion in revenue for the current quarter, comfortably surpassing analysts’ forecasts.
Chief Executive Jensen Huang told investors that demand for Nvidia’s advanced chips remains “skyrocketing,” emphasizing that artificial intelligence adoption continues to accelerate across industries. “AI is here, AI is not going to go back,” Huang said during the company’s conference call, reinforcing the long-term narrative that has propelled technology stocks to record highs.
Nvidia shares rose 0.2% in after-hours trading following the announcement, suggesting that while expectations were already elevated, the results were sufficient to reassure investors that the AI spending cycle remains intact.
The company’s performance helped lift Wall Street on Wednesday. The S&P 500 climbed 0.8% to 6,946.13, the Dow Jones Industrial Average advanced 0.6% to 49,482.15, and the Nasdaq Composite gained 1.3% to 23,152.08 as technology stocks led the charge.
Still, some caution lingers. Investors remain mindful of stretched valuations and the potential for volatility if corporate earnings fail to keep pace with rising share prices. However, Thomas Mathews, head of markets for Asia Pacific at Capital Economics, argued in a research note that strong profit growth highlighted in recent earnings reports, including Nvidia’s, provides a solid foundation for further equity gains. He forecast the S&P 500 could reach 8,000 by the end of 2026 if earnings momentum continues.
In commodities trading early Thursday, U.S. benchmark crude oil rose 16 cents to $65.58 per barrel, while Brent crude added 21 cents to $71.90 a barrel. Precious metals pulled back, with gold slipping 0.3% and silver declining 2%, as risk appetite improved following the tech earnings boost.
Currency markets showed modest moves. The U.S. dollar weakened to 155.89 Japanese yen from 156.39 yen, while the euro edged up to $1.1817 from $1.1812, reflecting relatively stable global foreign exchange conditions amid the shifting market landscape.