Investing.com -- Most Asian stocks rose on Thursday, with technology stocks leading gains after major chipmaker Nvidia Corp (NASDAQ: NVDA ) logged stronger-than-expected quarterly earnings, although concerns over China and high interest rates still kept broader gains muted.
Regional chipmaking stocks, particularly those with exposure to Nvidia and artificial intelligence, saw strong gains, while broader technology stocks also advanced.
Some cooling in U.S. Treasury yields benefited the sector, although yields still remained close to multi-decade highs. Asian stocks were also nursing steep losses over the past week amid persistent concerns over China and rising U.S. interest rates.
Tech, Nvidia suppliers log strong gains after bumper Q2
Nvidia reported better-than-expected second-quarter earnings on Wednesday, and also presented consensus-beating guidance for the third quarter as the world’s most valuable chipmaker benefited from a boom in artificial intelligence development. Shares of the chipmaker surged over 6% in aftermarket trade.
The firm posited an improved outlook for the tech sector thanks to AI demand, helping spark a sharp rally in U.S. tech stocks, which in turn spilled over into Asian markets.
Tech heavyweights Baidu Inc (HK: 9888 ) (NASDAQ: BIDU ), Alibaba Group (HK: 9988 ) (NYSE: BABA ), and Tencent Holdings (HK: 0700 ) - all three of which have some exposure to AI - rose between 0.9% and 3%, helping Hong Kong’s Hang Seng index add 1%.
Futures for India’s Nifty 50 index pointed to a strong open, likely on strength in heavyweight technology stocks.
Broader Asian markets also advanced, with Australia’s ASX 200 up 0.2%.
Broader gains limited amid China fears, U.S. rate uncertainty
But despite strength in tech, persistent concerns over a Chinese economic slowdown and rising U.S. interest rates kept gains in broader Asia limited. China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes lagged their peers on Thursday, trading in a flat-to-low range.
China has largely disappointed investor expectations for more stimulus measures, while economic conditions continued to deteriorate in the country through July.
Weak business activity readings from the U.S. and euro zone also dented appetite for risk-driven assets, while anticipation of more cues on U.S. monetary policy from the Jackson Hole Symposium kept traders wary.
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