Nikkei hits record high after Nvidia lifts Asian tech

Japan’s Nikkei share average reached a new all-time high on Thursday, driven by strong revenue forecasts from U.S. chip designer Nvidia, boosting the Asian tech stocks, Reuters reported.

Chinese equities rebounded from an initial decline and appeared poised to extend their winning streak to an eighth consecutive session, reflecting optimism about Beijing’s stimulus measures.

The Nikkei 225 share average closed 2.19 per cent higher at 39,098.68, surpassing the previous all-time closing and intraday highs set on 1989. The market’s positive sentiment was attributed to strong corporate earnings, a weakening yen, and the government’s focus on corporate governance.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.56 per cent, with Taiwan’s stock benchmark and Hong Kong’s Hang Seng gaining around one per cent. Mainland blue chips were up 0.61 per cent.

U.S. stock index futures indicated solid gains, driven by Nvidia’s strong revenue forecast, which led to a 10 per cent increase in its shares after-hours, said senior markets analyst at Capital.com Kyle Rodda.

The Nikkei surged nearly 17 per cent this year, while the S&P 500 and Nasdaq have each rallied around five per cent, driven by expectations for artificial intelligence (AI) and Nvidia’s central role in this trend.