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Nvidia lifts Asia stocks after earnings

Asian equities advanced on Thursday after Nvidia reported stronger-than-expected results and issued an upbeat revenue outlook, boosting technology shares across the region. US stocks had already closed higher on Wednesday as hopes for easing tensions with Iran supported sentiment, while oil prices fell sharply. The US Dollar Index remained elevated, while US Treasury yields retreated on Wednesday but remained high, with the 2-year yield at 4.1% and the 10-year yield at 4.6%. Investors now turn to Purchasing Managers’ Indices from Europe, the UK and the US due on Thursday. 

  • Data
  • Autore Shane Strowmatt, Senior Investment Writer
  • Tempo di lettura 5 minuto

Navigator_Nvidia

Nvidia, the largest company in the world by market cap, reported stronger-than-expected fiscal first-quarter results after the bell on Wednesday and projected second-quarter revenue of USD 89.1 billion to USD 92.8 billion, above the market's expectations. The AI chipmaker posted earnings per share of USD 1.87 on revenue of USD 81.62 billion, while its core data centre unit generated USD 75.2 billion in the latest quarter, exceeding consensus as well. The company also raised its quarterly dividend to USD 0.25 per share and said half of data centre revenue came from hyperscalers, with the rest driven by AI cloud, industrial, enterprise and sovereign customers. The results lifted sentiment for semiconductor stocks, but Nvidia's shares were trading down 0.5% in after-hours trading on Wednesday.

Asian stocks climb after Nvidia

Asian equities advanced on Thursday after Nvidia reported results, lifting technology shares across the region. South Korea’s KOSPI jumped 8.3%, while Samsung Electronics surged more than 8% after reaching a tentative wage agreement with its union, easing fears of disruption to memory chip supplies. Japan’s Nikkei rose 3.2%, with SoftBank Group gaining nearly 20%. Japanese sentiment was lifted by macroeconomic data released on Thursday that showed Japan’s exports rose 14.8% year on year in April, driven by a surge in semiconductor shipments. Australia’s S&P/ASX 200 added 1.4%, and India’s Nifty 50 gained 0.4%, while Chinese markets lagged with a 0.2% rise in the CSI 300 as concerns over the property sector and limited policy support persisted.

US stocks rebound on Iran hopes

US equities rose on Wednesday as comments from US President Donald Trump about negotiations with Iran entering their final phase lifted hopes of easing tensions and pushed oil prices lower. Brent crude dropped 5.6% to USD 105 per barrel, while US West Texas Intermediate dropped roughly 5% to below USD 99, marking the steepest decline in more than a month. The Nasdaq 100 gained 1.7% to 29,297.70 points, while the S&P 500 rose 1.1% to 7432.97 and the Dow Jones Industrial Average advanced 1.3% to 50,009.35. Chip stocks led the move, with chip designer Arm surging 15%, AMD climbing 8.1% and Intel adding 7.4% ahead of Nvidia’s earnings after the bell.

Euro-area inflation accelerates in April

Euro-area annual inflation rose to 3.0% in April, Eurostat said on Wednesday, up from 2.6% in March and 2.2% a year earlier, while EU inflation increased to 3.2% from 2.8% and 2.4%. The pickup was driven mainly by services and energy, which made the largest positive contributions to the euro-area rate. European stock markets posted broad gains on Wednesday. The Euro Stoxx 50 rose 2.1%, while Germany’s DAX gained 1.4% and France’s CAC 40 advanced 1.7%. Switzerland’s SMI also closed 0.3% higher on Wednesday.

UK inflation eases in April

UK annual inflation slowed to 2.8% in April, data from the Office for National Statistics showed on Wednesday, down from 3.3% in March and slightly below economists’ expectations. The decline was driven mainly by lower electricity and gas prices after Ofgem’s energy price cap was reduced at the start of April, alongside smaller increases in water charges and road tax and softer food and holiday prices. These effects were partly offset by higher petrol and diesel costs and firmer clothing and footwear prices. The slowdown may prove temporary, however, as rising energy costs linked to the Iran war are expected to push inflation higher again later this year.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Deere and Walmart.

Economic data in focus: Purchasing Managers’ Indices from some of the world’s largest economies, such as France (09:15), Germany (09:30), the euro area (10:00), the UK (10:30) and the US (15:45); Philly Fed Manufacturing Index (14:30), US weekly initial jobless claims (14:30), US building permits (14:30).

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Editor: Alessandro Fezzi
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