© Reuters
Investing.com — Most Asian stocks rose on Thursday, with technology stocks leading gains after major chipmaker Nvidia Corp (NASDAQ:) logged stronger-than-expected quarterly earnings, although concerns over China and high interest rates still kept broader gains muted.
Regional chipmaking stocks, particularly those with exposure to Nvidia and artificial intelligence, saw strong gains, while broader technology stocks also advanced.
Some cooling in U.S. Treasury yields benefited the sector, although yields still remained close to multi-decade highs. Asian stocks were also nursing steep losses over the past week amid persistent concerns over China and rising U.S. interest rates.
Tech, Nvidia suppliers log strong gains after bumper Q2
Japanese chip testing equipment maker Advantest Corp (TYO:) jumped more than 2% and was the top performer on the , while chipmaking giant TSMC (TW:) (NYSE:) rose over 2%.
South Korea’s SK Hynix Inc (KS:), which supplies Nvidia with memory chips, rallied over 5%, while peer Samsung Electronics Co Ltd (KS:) rose 2.1%.
Nvidia reported on Wednesday, and also presented consensus-beating guidance for the third quarter as the world’s most valuable chipmaker benefited from a boom in artificial intelligence development. Shares of the chipmaker surged over 6% in aftermarket trade.
The firm posited an improved outlook for the tech sector thanks to AI demand, helping spark a , which in turn spilled over into Asian markets.
Gains in tech stocks helped the add 0.3%, while South Korea’s rose 0.7%, also benefiting from the keeping interest rates steady for a fourth straight month.
Tech heavyweights Baidu Inc (HK:) (NASDAQ:), Alibaba Group (HK:) (NYSE:), and Tencent Holdings (HK:) – all three of which have some exposure to AI – rose between 0.9% and 3%, helping Hong Kong’s index add 1%.
Futures for India’s index pointed to a strong open, likely on strength in heavyweight technology stocks.
Broader Asian markets also advanced, with Australia’s up 0.2%.
Broader gains limited amid China fears, U.S. rate uncertainty
But despite strength in tech, persistent concerns over a Chinese economic slowdown and rising U.S. interest rates kept gains in broader Asia limited. China’s and indexes lagged their peers on Thursday, trading in a flat-to-low range.
China has largely disappointed investor expectations for more stimulus measures, while economic conditions continued to deteriorate in the country through July.
Weak business activity readings from the U.S. and euro zone also dented appetite for risk-driven assets, while anticipation of more cues on U.S. monetary policy from the kept traders wary.
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