Asian markets experienced a substantial surge on Thursday, propelled by the exceptional performance of tech giant Nvidia on Wall Street and a reduction in U.S. bond yields, alleviating concerns about global borrowing costs. This surge was further bolstered by a series of soft manufacturing surveys, fostering optimism that central banks might halt their tightening policies.
In response to these favorable developments, the pan-region Euro Stoxx 50 futures exhibited a robust gain of 1.7%. German DAX futures followed suit with a 0.6% climb, and FTSE futures also participated, contributing a 0.5% increase. The MSCI’s broadest index of Asia-Pacific stocks, excluding Japan, surged by an impressive 1.7%, largely attributed to the prominent role played by technology leader Nvidia.
Notably, Nvidia’s stock encountered a remarkable ascent of 10% subsequent to the company’s release of stellar financial results and an optimistic outlook. This exceptional performance resonated across markets, generating a ripple effect that transcended geographical boundaries.
Within the region, Australian shares made a modest advancement of 0.63%, while Japan’s Nikkei stock index exhibited a substantial rise of 0.81%. This marked the fourth consecutive session of gains, marking the longest streak since mid-June. Similarly, China’s stocks rebounded, with the blue-chip CSI300 index progressing by 1.28%. Hong Kong’s Hang Seng index was a standout performer, registering a significant 2.1% increase in afternoon trade. This resurgence was attributed to the recovery of the Chinese yuan against the dollar, infusing renewed confidence into the market.
In the Australian market, an intriguing development was the net inflow of 2.9 billion yuan ($398.78 million) from foreign investors, effectively snapping a 13-day streak of selling. This shift in sentiment underscored the growing appeal of the market to international investors.
As the day progressed, U.S. stock futures, specifically the S&P 500 e-minis, demonstrated a notable uptick of 0.77%. Correspondingly, U.S. treasuries continued to retreat, driving the yield on benchmark 10-year Treasury notes to 4.2076%, a slight increase from its U.S. closing value of 4.198%.
Within currency markets, the dollar index exhibited stability at 103.35 during afternoon Asia trade, having reached a two-month pinnacle of 103.4 against a basket of major currencies. The Japanese yen displayed a noteworthy recovery, rebounding to 145.165 after touching a nine-month low of 145.34.
The repercussions of these market movements reverberated through the commodities sector. U.S. crude experienced a marginal decline of 0.06%, settling at $78.84 per barrel. Similarly, Brent crude witnessed a decrease, reaching $83.2 per barrel. In contrast, spot gold encountered an ascent, reaching $1,919.5 per ounce.
Investor attention remained fixated on the forthcoming Jackson Hole Symposium scheduled for Friday. Market participants anticipate insights from Federal Reserve Chair Powell, who is expected to exercise caution and offer commentary on recent improvements in U.S. inflation, all while avoiding any explicit commitment to additional rate hikes.
The commendable results exhibited by Nvidia, combined with the broader surge in Asian markets, vividly underscore the potential for corporations to act as potent catalysts, steering economic dynamics in conjunction with favorable macroeconomic conditions.
