Asian stocks edge higher on Thursday

Asian stocks edged higher on Thursday after upbeat earnings guidance from Nvidia eased concerns over AI-driven volatility, although uncertainty over long-term spending and rising costs kept gains in check.

Nvidia forecast first-quarter revenue above market expectations, supported by continued strong demand from major technology firms for its AI processors. However, the stock traded flat in after-hours dealings, disappointing investors accustomed to stronger earnings beats. Nasdaq futures slipped 0.3 per cent, while S&P 500 futures fell 0.2 per cent. EUROSTOXX 50 and FTSE futures also declined.

In Asia, Japan’s Nikkei 225 rose 0.15 per cent and South Korea’s KOSPI surged 3 per cent. MSCI’s broad Asia-Pacific index excluding Japan gained 0.65 per cent. Hong Kong’s Hang Seng Index fell 0.76 per cent, while China’s CSI 300 eased 0.2 per cent.

Market strategists said the immediate reaction reflected relief after weeks of AI-related swings, though debate persisted over the sustainability of capital expenditure and stretched valuations in parts of the sector.

In currency markets, the Japanese yen remained near a two-week low following the nomination of two academics seen as supportive of stimulus to the board of the Bank of Japan. The move cast doubt on the pace of further rate hikes. The yen later recovered 0.3 per cent to 155.88 per dollar after a board member called for gradual increases and Governor Kazuo Ueda signalled openness to a near-term hike.

The euro rose 0.1 per cent to $1.1821, while sterling held steady at $1.3561.

Attribution: Reuters