Asian stocks rallied significantly, with MSCI's broadest index of Asia-Pacific shares outside Japan climbing 2.6%, ending a four-day streak of losses. Korea's Kospi leaped over 7%, Taiwanese shares rose 3.5%, and Chinese blue-chips gained 1.1%. This surge was primarily fueled by Nvidia's better-than-expected revenue forecast, which reassured investors about the sustained demand for its AI chips, and the suspension of a workers' strike at Samsung Electronics.
Nvidia's strong outlook boosted Asian chipmakers' shares. On Wall Street, the S&P 500 rose 1.1% and the Nasdaq Composite rallied 1.5%. Samsung Electronics shares surged 6% in Seoul after its union tentatively agreed to a pay deal, averting a significant strike. Japan's Nikkei 225 jumped 3.6% following positive flash manufacturing PMI data. Australian shares rose 1.6%.
Despite the positive market reactions, some analysts expressed reservations. Tony Sycamore, a market analyst at IG, noted the market's reaction was "relatively muted by its own lofty standards" due to the lack of China sales in Nvidia's outlook. Additionally, Nvidia's shares fell 1.3% in extended trading, and S&P 500 e-mini futures slipped 0.2%. A shareholder group for Samsung also indicated they would challenge the pay deal as illegal. Oil prices edged up 0.6% to $105.68 a barrel, while the US 10-year Treasury bond yield increased by 1 basis point to 4.578%.
