Asian shares rose at the open Thursday, following a bullish session on Wall Street, though the optimism was capped by a tepid response to Nvidia Corp.'s upbeat sales forecast.
The MSCI Asia Pacific Index rose 0.8% while the chipmaker's shares erased earlier gains in extended trading. US equity-index futures also edged lower in early Asian trading after Nvidia failed to wow investors even with an upbeat forecast, signaling that concerns about an overheated AI economy will continue to dog the company.
In Wednesday's trading, the S&P 500 rose 0.8% and the tech-heavy Nasdaq 100 rose 1.4%. In other parts of the market, Treasuries fell across the curve and the dollar slipped. Precious metals whipsawed but remained in the green during Wednesday's session. Bitcoin fell 1.5% to trade below $68,000.
Markets were counting on an optimistic outlook from the artificial intelligence bellwether to inject further vim into the AI trade and soothe concerns that a surge in valuations had outpaced fundamentals. By signaling the massive build-out of AI computing remains on track, Nvidia's forecast could underpin earnings expectations across the semiconductor supply chain and provide a fresh boost for Asian chipmakers.
Photo Credit: Bloomberg News
Markets were looking to Nvidia's earnings to provide a sense of calm after heightened concerns recently. Though the average Wall Street estimate was $72.8 billion, some analysts had projected numbers approaching $80 billion, according to data compiled by Bloomberg.
Investors have been so sensitive that a report from a little-known firm called Citrini Research outlining the potential AI risks to various industries — using hypothetical scenarios set in the future — jolted markets earlier this week. The disruptive potential of the technology has roiled stocks across sectors for weeks in what's become known as the “AI scare trade.”
Wolfe Research conducted a poll that suggests most investors bet the AI “wrecking ball” that's roiled markets is largely “overblown,” said Chris Senyek. However, participants viewed the “broadening out” trade as alive.
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Asia, however, has been a beneficiary of the AI boom as traders pile into chipmakers such as Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co., viewing them as the “picks and shovels” of the AI supply chain.
Meanwhile, President Donald Trump is convening tech executives from firms including Amazon.com Inc., Meta Platforms Inc., Microsoft Corp. and Alphabet Inc. at the White House next week to sign pledges committing their companies to foot the electricity bill for energy-hungry data centers.
Trump will also sign a directive in the coming days raising his global tariff to 15% “where appropriate” and is seeking “continuity” with nations that struck trade deals, US Trade Representative Jamieson Greer said.
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Some of the main moves in markets:
Stocks
- S&P 500 futures fell 0.1% as of 9:03 a.m. Tokyo time
- Hang Seng futures rose 0.7%
- Japan's Topix rose 1.2%
- Australia's S&P/ASX 200 rose 0.4%
- Euro Stoxx 50 futures rose 0.7%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $1.1815
- The Japanese yen rose 0.1% to 156.21 per dollar
- The offshore yuan was little changed at 6.8532 per dollar
- The Australian dollar was little changed at $0.7120
Cryptocurrencies
- Bitcoin fell 1.6% to $67,827.26
- Ether fell 2.4% to $2,050.95
Bonds
- Australia's 10-year yield declined two basis points to 4.70%
Commodities
- West Texas Intermediate crude rose 0.3% to $65.60 a barrel
- Spot gold was little changed
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