The shares of China’s CATL, the world’s largest battery manufacturer, listed in Hong Kong, experienced a decline of up to 8.75% on Thursday. This drop occurred as investors aimed to secure profits after the expiration of a six-month sales restriction on approximately 77.5 million shares owned by early stakeholders. The 23 cornerstone investors comprise Sinopec HK, Kuwait Investment Authority, and UBS Asset Management, as detailed in the company’s prospectus. CATL’s IPO in May raised HK$35.7 billion ($4.6 billion) according to a company filing, reportedly making it the largest offering this year globally, as investors place their confidence in the company’s capacity to capitalize on the surge in electric vehicles. CATL shares on the Shenzhen stock exchange experienced a decline of 2.59%. CATL’s shares experienced a decline of 6.56% in the most recent trading session. The Hang Seng Index in Hong Kong experienced a reversal, declining by 0.47%, whereas the mainland CSI 300 recorded a decrease of 0.32%.

The stronger-than-expected earnings and bullish forecast seem to bolster confidence in the global AI trade. The shares of the chip giant experienced an increase of over 4% in after-hours trading following the release of its fiscal third-quarter earnings, which surpassed both earnings and revenue expectations. The AI chip darling provided a fourth-quarter sales forecast that exceeded expectations, with CEO Jensen Huang noting that demand for its current-generation Blackwell chips is “off the charts.” Japan’s benchmark Nikkei 225 index reduced its earlier gains to finish 2.65% higher at 49,823.94, while the Topix index increased by 1.66% to 3,299.57. Chip-related stocks experienced a notable increase on the index following positive sentiment surrounding Nvidia’s quarterly report. The tech conglomerate SoftBank saw a closing rise of 1.89%, having surged as much as 8% earlier in the trading session. Semiconductor equipment manufacturer Tokyo Electron experienced an increase of 5.31%, while Lasertec saw a rise of 6.17%. In contrast, chipmaker Renesas Electronics moderated its gains, trading 1.7% higher.

Yields on 30-year Japanese government bonds have stabilized after reaching a historic peak of 3.375%. The yield on the 20-year government bond increased by over 3 basis points to 2.853%, marking the highest level since 1999. Meanwhile, the yield on the 10-year bond rose by 3.6 basis points to 1.799%, reaching its highest level since 2008. South Korea’s Kospi index experienced an increase of 1.92%, concluding at 4,004.85, while the small-cap Kosdaq saw a rise of 2.37%. Investor sentiment remained positive, particularly among South Korean memory chip manufacturers, as SK Hynix adjusted its earlier gains to conclude 1.6% higher, whereas Samsung Electronics experienced a rise of 4.25%. Australia’s ASX/S&P 200 maintained its upward trajectory, increasing by 1.24% to reach 8,552.7. Taiwan’s Taiex experienced an increase of 3.18%. Shares of Nvidia chips manufacturer TSMC on the index advanced more than 4%, while Hon Hai Precision Industry — also known as Foxconn, and supplier to Nvidia — climbed 3.28%. India’s Nifty 50 increased by 0.39%, and the Sensex index experienced a rise of 0.4%.

U.S. equity futures experienced an uptick during early Asian trading hours, buoyed by Nvidia’s optimistic guidance. This development appears to have enhanced investor sentiment regarding the AI sector, particularly in light of recent trading sessions that have been characterized by concerns over high valuations, debt financing challenges, and the risk of chip depreciation. “Nvidia’s numbers remain extremely strong now, but there are inevitably questions whether Huang’s company has already reached its high-water mark in terms of growth and market share,” stated David Russell. Overnight, the S&P 500 gained 0.38% to close at 6,642.16, thereby ending a four-day losing streak, while the Nasdaq Composite advanced 0.59% to settle at 22,564.23. The Dow Jones Industrial Average increased by 47 points, representing a 0.1% rise, concluding at 46,138.77.