Tech stocks lift Japan’s Nikkei on boost from Nvidia’s robust outlook
Japan’s Nikkei share average rose on Thursday led by a rally in technology stock, after US peer Nvidia’s earnings delivered on sky-high expectations, although concerns about the domestic central bank’s policy outlook limited gains.
Markets were not disappointed in the week’s most closely-watched event, with Nvidia hitting a record high after the US chipmaker forecasted quarterly revenue above estimates on Wednesday and announced a stock split.
With the rally in artificial intelligence-related stocks getting a reassuring boost, tech shares led gains on the Nikkei share average, which was up 0.77 percent at 38,913.48 by the midday break.
The broader Topix was up 0.37 percent at 2747.49.
Australian shares drop
Australian shares tracked Wall Street peers to trade lower on Thursday as investors assessed minutes from the US central bank’s policy meeting, while global miner BHP lost foothold after a third rejection from smaller rival Anglo American.
The S&P/ASX 200 index was down 1 percent at 7,766.50 points, as of 0047 GMT.
The benchmark appeared poised for a third straight day of losses, if current trend stands.
All the three major stock indexes on the Wall Street closed lower overnight after the US Federal Reserve’s minutes revealed that the board discussed future interest rate hikes considering the slow rate of disinflation, but retained faith that price pressures would ease.
Back in Sydney, mining behemoth BHP Group fell 2.7 percent after its takeover target Anglo American rejected the Australian miner’s third buyout proposal after market hours on Wednesday.
Indian shares set for a muted open
Indian shares are set for a muted open on Thursday, after the Federal Reserve’s latest policy minutes reflected disappointment in recent inflation data, dampening hopes of an early rate cut.
The Gift Nifty was trading at 22,646 as of 7:52 a.m. IST, indicating the Nifty 50 will open near Wednesday’s close of 22,597.80.
Asian markets opened lower, with the MSCI Asia ex-Japan index dropping 0.75 percent.
All three major US stock indexes ended lower overnight, after the minutes of the latest Fed policy meeting indicated that the US central bank officials acknowledged disappointment over recent inflation readings, signalling that interest rates could remain higher for longer.
US-rate cut sensitive Nifty information technology stocks, which rose 0.7 percent in the previous session, would be in focus.
The Indian shares’ volatility index has been hovering around 19-month highs as worries about the election results and foreign selling pressure weigh on investor sentiment.
China stocks fall
China and Hong Kong stocks fell on Thursday, tracking regional markets lower as investors digested the implications of policymakers in major economies preferring to take a patient approach to monetary easing amid sticky inflation.
Geopolitical tensions also kept investors nervous as China’s military started two days of “punishment” drills held in five areas around Taiwan just days after Taiwan President Lai Ching-te took office.
Several key Asian share benchmarks fall
Several key Asian share benchmarks fell on Thursday as markets digested the implications of policymakers in major economies preferring to take patient approach to monetary easing amid sticky inflation.
MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.57 percent.
Australia’s S&P/ASX 200 index was one of the biggest decliners, slumping 0.8 percent, also hurt by a pullback in some commodity prices.
Geopolitical tensions also kept investors nervous as China’s military started two days of “punishment” drills held in five areas around Taiwan just days after new Taiwan President Lai Ching-te took office.
But Taiwan’s stock market was not too fussed and was last up 0.3 percent.
More hawkish-than-expected minutes of the Federal Reserve’s latest policy meeting, a hot UK inflation print and a sobering assessment of New Zealand’s inflation problems from the country’s central bank have caused investors to pare their bets of the pace and scale of global rate cuts expected this year.
Most major Gulf bourses drop
Most major stock markets in the Gulf slipped on Wednesday amid falling oil prices, with investors awaiting minutes of the U.S. Federal Reserve’s latest policy meeting for clues on the timing of a rate cut.
Oil prices, a catalyst for the Gulf’s financial markets, dropped for a third straight session, with Brent down 1 percent at $82.07 a barrel by 1310 GMT.
The Abu Dhabi benchmark index fell 0.4 percent to 8,973, its lowest level in more than two years with most of its constituents posting losses. The conglomerate Alpha Dhabi Holding declined 2.9 percent and Aldar Properties, the emirate’s largest developer, slid 3.6 percent.
Bayanat AI and Presight AI Holding lost 6.1 percent and 3.1 percent respectively.
Meanwhile, Bayanat and Presight’s parent company G42 and Microsoft said they will invest $1 billion in a data center in Kenya as part of its efforts to expand cloud-computing services in East Africa.
Dubai’s benchmark index slipped 0.4 percent, with tolls operator Salik Company falling 2.1 percent and Emirates NBD, the emirate’s largest bank, down 1.5 percent.
Sri Lankan shares end higher
Sri Lankan shares closed higher on Wednesday, snapping two straight sessions of losses, boosted by gains in financials and industrial stocks.
The CSE All Share index settled 1.08 percent higher at 12,348.84 points
LOLC Finance and LOLC Holdings were top gainers on the index, rising 6.3 percent and 2.4 percent, respectively.
The Sri Lankan markets will remain closed on Thursday, May 23, and Friday, May 24, for holidays. Trading will resume on Monday, May 27.
Trading volume on the CSE index rose to 109 million shares from 54.6 million in the previous session.