Nvidia and geopolitical tensions drive Asian tech markets
Technology stocks were the main driver of the markets, supported by expectations surrounding artificial intelligence and better-than-expected earnings from Nvidia, while geopolitical tensions in the Middle East and the evolution of talks between the United States and Iran remained at the center of investors’ attention.
According to market data, investor sentiment improved thanks to signs of a possible easing of the crisis in the Strait of Hormuz and reduced fears of another surge in oil prices.
Closing levels of the main Asian indexes
- Nikkei 225: around 61,684 points, up more than 3%
- Hang Seng Index: around 25,392 points, down about 1%
- Shanghai Composite: around 4,077 points, down more than 2%
- KOSPI: around 7,815 points, sharply higher by more than 8%
Japanese and South Korean markets benefited mainly from the rally in semiconductor and AI-related stocks, while Chinese markets showed greater weakness due to persistent uncertainty surrounding domestic growth and consumer spending.
South Korea in the spotlight: Samsung and AI fuel the market
The strongest performance of the session came from Seoul. The KOSPI posted one of its best gains of the year thanks to the suspension of the internal strike at Samsung Electronics and growing optimism across the Asian chip supply chain. SK Hynix and other technology groups also benefited from the Nvidia effect.
In Japan, the Nikkei 225 extended its rally, supported by positive export data and resilience in the manufacturing sector. Investors also continue to monitor the monetary policy of the Bank of Japan and the performance of the yen.
Main factors influencing the markets
- very strong quarterly results from Nvidia and renewed expectations surrounding AI;
- easing tensions between the United States and Iran;
- decline in energy prices compared with the peaks of recent weeks;
- suspension of the workers’ strike at Samsung Electronics;
- ongoing concerns about global inflation and the next moves by the Federal Reserve.
According to analysts, markets remain vulnerable to oil price movements and developments in the geopolitical crisis in the Middle East. Investors are also closely watching foreign capital outflows from Asian markets, which have increased in recent weeks due to uncertainty over interest rates and global economic prospects.
China weak: domestic growth and investor caution weigh on markets
It was a more difficult session for Chinese markets. Shanghai and Hong Kong closed in negative territory, pressured by doubts over the recovery of domestic consumption and the cautious stance of international investors toward Chinese assets.
Market participants are still waiting for new economic stimulus measures from Beijing and further signals regarding the resilience of industrial growth. The real estate sector also continues to represent a source of pressure on overall sentiment across Asian markets.
Andrea Pelucchi