Asian stocks rise, tech advances with Nvidia earnings in sight

  • Stock Market News
Asian stocks rise, tech advances with Nvidia earnings in sight
Credit: © Reuters. Most Asian stocks rose on Tuesday, tracking overnight strength in Wall Street as markets looked to no more rate hikes from the Federal Reserve, while quarterly results from NVIDIA Corporation (NASDAQ: NVDA ) were squarely in focus.

Optimism over a recovery in China’s property sector also aided sentiment, as reports suggested that the government was planning on rolling out more supportive measures for the sector. 

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 0.6% and 0.3%, respectively, tracking large gains in property stocks.

Hong Kong’s Hang Seng index jumped 1.2%, also supported by property stocks. Longfor Properties and Country Garden Services jumped 7.5% and 4.2%, respectively, and were the top performers on the Hang Seng.

Heavyweight Chinese technology stocks rose tracking gains in their U.S. peers. Wall Street indexes had a positive overnight session, with Microsoft Corporation (NASDAQ: MSFT ) hitting record highs after recently ousted OpenAI CEO Sam Altman joined the tech giant. 

But phone maker Xiaomi (OTC: XIACF ) Corp (HK: 1810 ) was among the few laggards on the Hang Seng, falling nearly 3% even as the firm clocked strong quarterly earnings. But the stock had risen to a near two-year high in the run-up to its earnings. 

Tech rises, Nvidia results awaited for more AI cues 

Tech was the best-performing sector in Asia on Tuesday, with tech-heavy indexes such as South Korea’s KOSPI and the Taiwan Weighted index up around 1% each.

A sharp drop in Treasury yields benefited tech stocks, as markets bet that the Fed was done raising interest rates. The minutes of the central bank’s October meeting are due later in the day and will provide more cues on interest rates.

Gains in major Nvidia suppliers also supported the sector, ahead of quarterly results from the world’s most valuable chipmaker. Focus will be particularly on whether an AI-driven boom in Nvidia’s earnings spilled over into the third quarter, and whether the outlook remained as rosy. 

Japan’s Advantest Corp. (TYO: 6857 ), which supplies chip testing equipment to Nvidia, rose 2.3%, while TSMC (TW: 2330 ) (NYSE: TSM )- the world’s biggest contract chipmaker and also a major Nvidia supplier- added over 1% in Taiwan trade.

Gains in other chipmakers were somewhat muted, with Samsung Electronics Co Ltd (KS: 005930 ) and SK Hynix Inc (KS: 000660 ) rising 0.7% and 1%, respectively. Nvidia is expected to offer more cues on chip demand, particularly whether demand remained underpinned by increased AI development.

Broader Asian markets were mildly positive. Australia’s ASX 200 rose 0.3%, as Reserve Bank of Australia Governor Michele Bullock reiterated that inflation remained a key challenge to the economy in the coming months. 

Japan’s Nikkei 225 was flat after racing to 33-year highs on Monday, with a Reuters poll forecasting more gains in Japanese stocks on strong earnings and a largely dovish Bank of Japan. The Nikkei is among the best-performing Asian bourses this year, up nearly 28% so far in 2023. 

Futures for India’s Nifty 50 index pointed to a muted open, while Philippine shares led small gains across Southeast Asia with a 0.3% rise.

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