Asian stock markets advanced on Thursday, led by record highs in Japan and a strong rally in South Korea, as investors reassessed interest rate expectations and reacted to upbeat earnings from NVIDIA Corporation.
Japanese equities climbed after markets scaled back expectations of additional interest rate hikes by the Bank of Japan. The Nikkei 225 and TOPIX indexes both reached fresh record highs, extending gains from the previous session. Sentiment was boosted after Tokyo nominated two dovish academics to the BOJ board, raising doubts about further monetary tightening. A weaker yen also supported export-oriented companies. However, some Japanese technology stocks, particularly chipmakers, trimmed intraday gains as investors took profits following their pre-earnings rally.
In South Korea, the KOSPI surged more than 2% to a record 6,222.14 points, making it the region’s top performer. Nvidia’s earnings encouraged buying in Asian chipmakers with exposure to the company. Samsung Electronics and SK Hynix, key suppliers of memory chips to Nvidia, both rallied to record levels. The results reinforced expectations that artificial intelligence-driven demand for advanced semiconductors remains strong.
Additional support for the KOSPI came after the Bank of Korea left interest rates unchanged, as widely expected, and raised its economic growth outlook, citing optimism about the country’s semiconductor sector. Samsung also unveiled its new flagship S26 smartphone series, while SK Hynix announced plans to invest 21.6 trillion won ($15.07 billion) in a new production facility in South Korea.
Across the broader region, markets were mixed. Australia’s ASX 200 gained 0.5% to reach a record high, supported by strength in mining and banking stocks. In China, the Shanghai Composite and CSI 300 indexes edged lower after strong gains earlier in the week, when optimism around Lunar New Year consumer spending had driven a two-session rally.
Hong Kong’s Hang Seng index declined 0.5%, weighed down by losses in technology shares. Baidu Inc. fell 2.6% ahead of its fourth-quarter earnings, as investors focused on whether its heavy investment in artificial intelligence has translated into stronger results.
Singapore’s Straits Times index slipped 0.2%, while Thailand’s SET Index jumped 0.8% following an unexpected 25 basis point rate cut by the country’s central bank. India’s Nifty 50 rose 0.3% in morning trade.
On Wall Street, equities had closed higher overnight, led by technology stocks ahead of Nvidia’s earnings release. However, S&P 500 futures dipped 0.1% in Asian trading, and Nvidia shares eased slightly in after-hours trade despite beating earnings and revenue expectations. Concerns over inventory levels and Chinese sales continued to temper investor enthusiasm.
