Market Overview

Asian equity markets displayed mixed performance on Thursday as Nvidia’s strong second‑quarter earnings revived optimism for artificial‑intelligence spending, while concerns over higher memory costs, persistent inflation and the prospect of further interest‑rate hikes limited broader gains.

Nvidia Earnings and Outlook

Nvidia reported second‑quarter revenue that rose more than 106% year‑over‑year, with Data Center revenue jumping 117% to $89 billion. The company forecast third‑quarter revenue of $108 billion, exceeding analyst expectations, and indicated it expects overall fiscal‑2028 revenue to grow about 70%. Following the release, Nvidia’s shares climbed roughly 4.7% in after‑hours trading and rose over 5% in after‑market trade. The upbeat outlook lifted Nasdaq‑100 futures about 0.9% and S&P 500 futures around 0.5% during Asian trading, though the U.S. S&P 500 closed roughly flat.

Regional Market Moves

  • South Korea: The KOSPI advanced 1.9% after the Bank of Korea raised its benchmark rate by 25 basis points to 3%, citing stronger‑than‑expected growth, inflation above target and financial‑stability risks.
  • China: Shanghai Composite gained about 0.6% and the CSI 300 rose 0.5%.
  • Japan: Nikkei 225 slipped 0.1%.
  • Hong Kong: Hang Seng fell 0.5%.
  • Australia: S&P/ASX 200 declined 0.9%.
  • Singapore: Straits Times Index dropped 0.7%.
  • India: Nifty 50 edged up 0.2%.

Semiconductor and AI‑Related Stocks

In South Korea, SK Hynix rose 3.2% and Samsung Electronics increased 2.2%. Japan’s Kioxia gained 5.2%, TDK added 1.4%, Murata rose 3%, and Largan jumped almost 10%. Conversely, Advantest fell about 2.1%, Disco slipped 1.1% and Powertech Technology dropped 1.2%. Taiwan Semiconductor Manufacturing Co. (TSMC) edged up only 0.4%. These firms have direct links to Nvidia’s AI hardware ecosystem: Advantest supplies chip‑testing equipment, TSMC manufactures Nvidia GPUs, and Disco provides wafer‑cutting and grinding services.

Chinese‑Related Equity Reactions

In China and Hong Kong, Baidu rose 4.4%, SMIC gained 1.7% and Tencent added 0.7%, while Alibaba fell 0.6%, Xiaomi dropped 1.3%, NetEase slipped 1.8% and Meituan declined 0.8%. The mixed performance reflects both the positive Nvidia effect and specific concerns about the absence of Chinese Data‑Center revenue in Nvidia’s latest forecast.

Bond and Yield Environment

U.S. Treasury yields edged higher, with the two‑year yield up about 1 basis point to 4.22% and the ten‑year yield around 4.63% after earlier declines linked to falling oil prices. Money markets continue to price in a possible rate increase by year‑end, keeping pressure on high‑growth valuations.

Inflation and Monetary‑Policy Signals

The U.S. core personal consumption expenditures (PCE) price index rose 0.2% month‑over‑month and 3.3% year‑over‑year in July, reinforcing inflation concerns. Federal Reserve Chair Kevin Warsh is scheduled to speak at the Jackson Hole Economic Symposium, his first major address as Fed chair. In Japan, Deputy Governor Ryozo Himino indicated that timely rate hikes could prevent abrupt inflation‑driven increases, leaving open the possibility of another hike as early as September.

Regional Central‑Bank Actions

The Bank of Korea’s 25‑basis‑point rate hike to 3% contrasted with the Bank of Thailand’s decision to keep its policy rate unchanged at 1%, citing an accommodative stance. The Thai SET index rose about 0.6% following the decision.

Summary of Key Figures

  • Nvidia Q2 revenue: +106% YoY; Data Center revenue: $89 bn (+117%).
  • Nvidia Q3 revenue forecast: $108 bn; FY2028 revenue growth outlook: ~70%.
  • Nvidia share move: +4.7% after‑hours, >5% after‑market.
  • Nasdaq‑100 futures: +0.9%; S&P 500 futures: +0.5%.
  • MSCI Asia‑Pacific gauge: up 0.5‑0.7% (third session gain).
  • KOSPI: +1.9%; Shanghai Composite: +0.6%; CSI 300: +0.5%; Nikkei 225: -0.1%; Hang Seng: -0.5%.
  • SK Hynix: +3.2%; Samsung: +2.2%; Kioxia: +5.2%; TDK: +1.4%; Murata: +3%; Largan: ~+10%.
  • Advantest: -2.1%; Disco: -1.1%; Powertech Technology: -1.2%; TSMC: +0.4%.
  • Baidu: +4.4%; SMIC: +1.7%; Tencent: +0.7%; Alibaba: -0.6%; Xiaomi: -1.3%; NetEase: -1.8%; Meituan: -0.8%.
  • U.S. 2‑yr Treasury: 4.22%; 10‑yr Treasury: 4.63%.
  • Core PCE index: +0.2% MoM, +3.3% YoY.
  • Bank of Korea rate: 3% (up 25 bps); Bank of Thailand rate: 1% (unchanged).