Asian stock markets experienced an uptick on Thursday, buoyed by stronger-than-anticipated earnings from Nvidia, which alleviated worries regarding potential AI-related disruptions and escalating cost pressures. Nvidia on Wednesday projected first-quarter revenue exceeding market expectations, attributing this to sustained strong investment by leading technology companies in its artificial intelligence chips. The closely monitored results alleviated investor apprehensions regarding the magnitude of corporate expenditure on AI-related investments, providing reassurance to markets that the demand for advanced processors continues to be robust. “Nvidia’s results serve as a robust indicator of artificial intelligence expenditure, and the guidance suggests that demand remains high.” However, the market’s response indicates a transition: investors have moved past questioning the legitimacy of the theme. “They debate how smooth the next two years look, and how many things can go wrong at once,” said Ruben Dalfovo.

In the Asian stock market, momentum propelled Japan’s Nikkei 225 to a record high early in the session, while South Korea’s KOSPI experienced a 3.42 percent increase. Meanwhile, MSCI’s broadest index of Asia-Pacific shares outside Japan experienced an increase of 0.62 percent. In China, the CSI 300 Index experienced a decline of 0.37 percent, whereas Hong Kong’s Hang Seng recorded a decrease of 0.98 percent. Nvidia shares experienced an initial surge in extended trading after the earnings release, yet subsequently relinquished those gains. The reversal resulted in Nasdaq futures declining by 0.23 percent, while S&P 500 futures experienced a decrease of 0.15 percent. Nvidia shares concluded the trading session with a gain of 1.44 percent, reaching a closing price of $195.62, and experienced a slight increase of 0.15 percent in after-hours trading. “NVIDIA’s stock price and market value have exhibited significant volatility, with the company’s valuation evolving from under $400 billion in 2022 to approximately $4.7 trillion, driven by remarkable advancements in AI.” The implied volatility associated with earnings stands at 5 percent, and the commentary from the CEO will act as a crucial assessment of AI expenditure,” stated Vijay Valecha.

In the European stock market, EURO STOXX 50 futures experienced a decline of 0.21 percent. Gold prices have declined to $5,192.92 following a three-week peak, influenced by a weaker dollar and ongoing discussions between Iran and the United States. In In the currency markets, attention remained on the Japanese yen, which was trading close to the two-week low established following the Japanese government’s nomination of two academics perceived by investors as staunch advocates of monetary stimulus for positions on the central bank’s board. The unexpected move was seen as consistent with Prime Minister Sanae Takaichi’s inclination towards an accommodative policy, raising questions about the probability of additional rate hikes from the Bank of Japan. The yen experienced a decline of 0.27 percent, trading at 156.01 per dollar. The U.S. dollar continued to face downward pressure, as the euro appreciated by 0.12 percent to $1.1824, while sterling increased by 0.08 percent to $1.3570. “The greenback has faced challenges in gaining traction as markets evaluate the implications of emerging tariff threats. President Trump cautioned that countries failing to adhere to current trade agreements may face increased duties, following the Supreme Court’s decision to reject previous emergency tariffs. A 10 percent global tariff, with discussions of increasing it to 15 percent, has instilled caution among investors and constrained the dollar’s short-term strength,” added Valecha.

In commodities, oil prices experienced an uptick as apprehensions lingered regarding potential supply disruptions arising from a possible military confrontation between the United States and Iran. Brent crude futures increased by 27 cents, representing a 0.38 percent rise, reaching $71.12 per barrel. Meanwhile, U.S. West Texas Intermediate futures gained 21 cents, or 0.32 percent, settling at $65.63 per barrel. Meanwhile, spot gold declined by 0.27 percent to $5,192.92 per ounce, while U.S. gold futures for April delivery decreased by 0.30 percent to $5,209.80.