Feb 22 2024: On Thursday, Japan’s Nikkei share average surged to its all-time peak following an unexpected surge in revenue forecasts from U.S. chip designer Nvidia, which propelled Asian tech stocks higher.
Chinese equities rebounded from early losses, poised to extend an eight-session winning streak amidst optimism surrounding Beijing’s stimulus measures.
While long-term U.S. bond yields hovered near three-month highs, the dollar weakened after the release of minutes from the Federal Open Market Committee meeting, confirming the Federal Reserve’s stance on gradual interest rate adjustments.
Closing 2.19% higher at 39,098.68, the Nikkei 225 reached a milestone, surpassing its previous all-time closing and intraday highs recorded on Dec. 29, 1989, during the peak of Japan’s so-called bubble economy.
With robust corporate earnings and favorable market conditions, investor sentiment remained optimistic, contributing to the ongoing surge in Japanese equities, according to Joe Lin, Executive Director for Investments at Golden Equator Wealth.
Elsewhere in Asia-Pacific, the broadest index outside Japan climbed 0.56%, supported by gains in Taiwan and Hong Kong, which rebounded sharply after initial losses.
U.S. stock index futures indicated solid gains following a mixed session on Wednesday, driven by Nvidia’s strong revenue forecast, which propelled its shares up approximately 10% after-hours.
The Nikkei’s remarkable performance this year, along with gains in the S&P 500 and Nasdaq, has been fueled by high expectations for artificial intelligence (AI), with Nvidia playing a pivotal role in this growth.
While the 10-year U.S. Treasury yield slightly eased to 4.3069%, it remained near last week’s level of 4.332%, heightening expectations of a rate cut.
The dollar retreated from its recent three-month high, with the U.S. dollar index down 0.12% at 103.86 in Asian trading on Thursday.
Meanwhile, oil prices climbed higher, building on gains from the previous session, supported by signs of tighter supply amidst refinery restarts in the United States.
