Asian shares surge after Nvidia delivered stronger-than-expected earnings, easing fears about the sustainability of the artificial intelligence boom. Investors across the region reacted positively to the chipmaker’s results, even as US futures edged slightly lower.
The rally highlights how closely global markets are tied to developments in artificial intelligence. With Nvidia at the centre of the AI supply chain, its performance continues to influence equities from Tokyo to Seoul. As Asian shares surge, traders are reassessing growth prospects for 2026.
Asian Shares Surge as Nikkei Hits Record Territory
In Japan, the Nikkei 225 briefly crossed the 59,000 mark for the first time before closing 0.2% higher at 58,715.33. The milestone reflects strong investor confidence in technology-linked stocks.
SoftBank Group climbed 3.5%, supported by its exposure to AI investments. However, chip equipment maker Tokyo Electron fell 2.8%, showing that gains were not evenly spread across the sector.
Investor sentiment also improved after Prime Minister Sanae Takaichi appointed two economists seen as favouring low interest rates to the central bank board. Markets interpreted the move as supportive of continued monetary accommodation.
Kospi Extends Rally as Tech Stocks Jump
South Korea’s Kospi surged 2.3% to 6,222.29. The index extended gains after breaking above the 6,000 level a day earlier. Since the start of the year, the Kospi has climbed 44%, marking one of the region’s strongest performances.
Samsung Electronics rose 5.5%, while SK Hynix added 2.5%. Both companies benefit directly from strong demand for advanced semiconductors linked to artificial intelligence.
Elsewhere, Australia’s S&P/ASX 200 gained 0.5%. Taiwan’s Taiex rose 0.2%, and India’s Sensex traded 0.3% higher. However, Hong Kong’s Hang Seng slipped 0.4%, and the Shanghai Composite edged down 0.1%.
Nvidia Earnings Calm AI Bubble Concerns
The reason Asian shares surge lies largely in Nvidia’s latest earnings report. The company posted a 73% year-on-year increase in quarterly revenue to $68 billion. It also forecast $78 billion in revenue for the current quarter, exceeding analyst expectations.
Chief Executive Jensen Huang emphasised that demand for Nvidia’s AI chips remains “skyrocketing.” His remarks reassured investors who had questioned whether massive AI investments would continue to deliver strong returns.
Nvidia shares rose 0.2% in after-hours trading. As the largest component of the S&P 500 and one of the world’s most valuable companies, Nvidia’s results have broad implications for global equity markets.
Wall Street Gains but Futures Slip
On Wednesday, US markets closed higher. The S&P 500 advanced 0.8% to 6,946.13. The Dow Jones Industrial Average gained 0.6%, and the Nasdaq composite jumped 1.3%.
Despite these gains, futures tied to major US indexes edged lower on Thursday morning. The pullback suggests that some investors remain cautious, even as optimism around AI growth strengthens.
Capital Economics noted that robust corporate profit growth could push the S&P 500 toward 8,000 by year-end. However, analysts warn that volatility may persist as markets adjust to shifting interest rate expectations and geopolitical developments.
Commodities and Currency Movements
In early trading, US benchmark crude oil added 16 cents to $65.58 per barrel. Brent crude rose 21 cents to $71.90. Gold slipped 0.3%, while silver declined 2%.
The US dollar weakened slightly against the Japanese yen, falling to 155.89 from 156.39. Meanwhile, the euro edged up to $1.1817.
Outlook as Asian Shares Surge
The fact that Asian shares surge following Nvidia’s earnings underscores the central role of artificial intelligence in current market dynamics. Technology stocks continue to drive investor sentiment across Asia and beyond.
While caution remains, especially in US futures trading, the latest data suggests confidence in AI-led growth remains intact. If corporate earnings continue to exceed expectations, regional markets could maintain upward momentum in the months ahead.
