Asian stocks rise for third day after Nvidia earnings beat

Asian equity markets climbed broadly on Thursday as Nvidia's ↗ 1.48% latest quarterly results topped expectations, sending a wave of optimism through the region's semiconductor and hardware supply chains. MSCI's broadest index of Asia-Pacific shares excluding Japan rose 0.7%, extending its rally to a third consecutive session.straitstimes+2

Nvidia reported that quarterly revenue more than doubled and issued a third-quarter forecast above Wall Street estimates, sending its shares up 4.7% in after-hours trading and lifting S&P 500 e-mini futures. The company also flagged 70% revenue growth for the next fiscal year.wtvbam+2

"The business is in absolutely rude health," said Chris Weston, head of research at Pepperstone Group in Melbourne. "It's going to wake people up and think 'what have I missed?' It's a really bullish story and anyone supplying Nvidia through the supply chain will likely see the benefit today."straitstimes+1

Supply Chain Rally Led by Korean Chipmakers

South Korea's Kospi surged as much as 2.76% at the open, briefly touching 6,996 and nearing the 7,000 milestone, before paring gains. The index settled around 1.5% higher after the Bank of Korea raised interest rates by 25 basis points to 3%, in line with expectations. Memory chipmakers led the charge: SK Hynix ↗ 2.20% jumped 4.8% and Samsung Electronics gained 3.25%.businesstimes+3

Taiwanese shares rose 0.9%, while Japan's Nikkei 225 slid 0.4%, with Newsquawk noting the distinction between sessions where the supplier rally broadens into equipment and memory names and those where it stalls, a pattern that has historically signaled whether the repricing is durable. In Hong Kong, an initial gain on the Hang Seng faded as the index slipped into the red by midday.news.rthk+1

Inflation and the Fed Loom

The rally unfolded against a backdrop of sticky U.S. inflation. The personal consumption expenditures index rose 0.2% in July from the prior month, and analysts at Societe Generale Société Générale S.A. warned that "the inflation backdrop looks somewhat firmer heading into the September FOMC meeting". Markets now await Fed Chair Kevin Warsh's speech at Jackson Hole on Friday for further clues on the interest rate path.klsescreener+3

Brent crude fell for a fourth straight day, declining 0.7% as Qatar's prime minister prepared to visit Tehran in an effort to relaunch U.S.-Iran peace talks. Gold rallied after a Wednesday pullback, while Bitcoin ↘ 0.19% also gained, with both benefiting from a revival of "dollar debasement trades" following the U.S. Treasury Department's intervention in bond markets last week.wtvbam+2