Asian markets experienced a substantial rally on Thursday as a remarkable performance by tech giant Nvidia propelled Wall Street forward. Additionally, a decline in U.S. bond yields alleviated global borrowing cost concerns. The surge in shares was further amplified by a series of soft manufacturing surveys, igniting hopes that central banks might halt their tightening measures. Pan-region futures for Euro Stoxx 50 surged by 1.7%, German DAX futures climbed 0.6%, and FTSE futures increased by 0.5%.
The MSCI’s comprehensive index of Asia-Pacific stocks, excluding Japan, recorded a significant 1.7% increase. A pivotal role in this surge was played by tech leader Nvidia, whose stock soared by 10%. The company’s blockbuster results and optimistic outlook contributed decisively to this upward trajectory.
The Australian shares saw a marginal rise of 0.63%, while Japan’s Nikkei stock index achieved a 0.81% increase, marking the fourth consecutive session of gains. This streak of gains was the longest observed since mid-June. China’s stock market also rebounded, with the blue-chip CSI300 index advancing by 1.28%. Hong Kong’s Hang Seng index displayed a robust growth of 2.1% during afternoon trade, a rally attributed to the resurgence of the Chinese yuan against the dollar.
The Australian market witnessed a notable impact from a 2.9 billion yuan ($398.78 million) net inflow of foreign investors, effectively ending a 13-day selling streak. U.S. stock futures, specifically the S&P 500 e-minis, reflected a rise of 0.77%. Simultaneously, U.S. treasuries continued their retreat, causing the yield on the benchmark 10-year Treasury notes to reach 4.2076%. This came after the U.S. close at 4.198%.
In currency markets, the dollar index maintained stability at 103.35 during afternoon trading in Asia, following its earlier peak of 103.4 against a basket of major currencies. The Japanese yen exhibited a recovery, reaching 145.165 after hitting a nine-month low of 145.34.
These market developments were palpable in the commodities sector. U.S. crude dipped slightly by 0.06% to settle at $78.84 per barrel. Meanwhile, Brent crude witnessed a decline to $83.2 per barrel. Conversely, spot gold displayed an increase, reaching $1,919.5 per ounce.
The focal point of attention now turns to the upcoming Jackson Hole Symposium scheduled for Friday. Analysts are anticipating cautious remarks from Powell, which would acknowledge the recent signs of improvement in U.S. inflation without necessarily committing to further rate hikes.
Overall, exceptional performance of Nvidia, combined with the broader rally in the Asian markets, serves as a compelling demonstration of how corporations can wield considerable influence over economic dynamics when strategically aligned with appropriate macroeconomic factors.
