Tech Rally Leads Asian Markets Higher as Nvidia Fuels AI Momentum

2025-12-26 06:08:32

Nvidia’s blockbuster third-quarter earnings and robust fourth-quarter guidance ignited a global rally in technology stocks Thursday, with Asian markets broadly climbing on renewed confidence in the AI cycle’s durability. The chipmaker’s stellar performance set the tone for regional exchanges, translating into significant gains across semiconductor-heavy markets.

The Nvidia Effect Spreads Across Asia

South Korea’s tech-heavy Kospi jumped 1.92 percent to 4,004.85, snapping a two-day losing streak as semiconductor leaders captured investor optimism. Samsung Electronics surged 4.3 percent while memory chip specialist SK Hynix advanced 1.6 percent, both riding the AI wave sparked by Nvidia’s confident outlook. In Tokyo, the Nikkei average climbed 2.65 percent to 49,823.94 after hitting an intraday peak of 50,574, with technology shares spearheading the advance. SoftBank Group, Tokyo Electron and Fujikura each rose 2-6 percent. The broader Topix index settled 1.66 percent higher at 3,299.57.

Japan’s market strength was amplified by currency tailwinds—the yen weakened to a 10-month low against the dollar after reports indicated the government was finalizing a stimulus package worth 21.3 trillion yen ($135.38 billion), providing additional support for export-sensitive tech stocks.

Mixed Signals Elsewhere in the Region

Hong Kong’s Hang Seng closed marginally higher at 25,835.57 following a volatile session, while China’s Shanghai Composite declined 0.40 percent to 3,931.05 as the People’s Bank of China maintained lending rates unchanged for the sixth consecutive month. This divergence underscored differing economic outlooks across the region.

Australia rebounded from five-month lows with the S&P/ASX 200 advancing 1.24 percent to 8,552.70, led by banks, miners and gold-linked stocks in a broad-based recovery. The All Ordinaries index climbed 1.29 percent to 8,834. Across the Tasman, New Zealand’s S&P/NZX-50 index gained 0.84 percent to 13,439.40.

Currency and Commodity Moves

The dollar gained ground as market expectations for near-term rate cuts diminished, with investors awaiting the delayed September U.S. jobs report originally scheduled for October 3. Gold edged lower after two consecutive sessions of gains, while crude oil ticked modestly higher as traders assessed the impact of new U.S. sanctions on Russia’s major energy producers Rosneft PJSC and Lukoil PJSC, effective Friday.

U.S. Markets Cap the Rally

Technology stocks led an overnight advance in U.S. equities ahead of Nvidia’s results, though gains remained capped as Target disappointed on comparable sales and Federal Reserve meeting minutes revealed mixed official views on interest rate trajectories and tariff-driven inflation risks. The Dow edged up 0.1 percent, the S&P 500 added 0.4 percent to break a four-day losing streak, and the Nasdaq Composite gained 0.6 percent.

The Nvidia-led momentum demonstrates how artificial intelligence remains the dominant market narrative, with tech stocks continuing to outperform in both Asia and the U.S., though underlying economic uncertainties persist.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.