Asian Markets Edge Higher After Nvidia Forecasts Growth

Asian stock markets recorded modest gains on Thursday, buoyed by corporate earnings that provided a temporary reprieve from recent volatility. NVIDIA Corporation reported a first-quarter revenue forecast that exceeded market expectations, yet the stock remained flat in after-hours trading. This reaction suggests that investors, who have become accustomed to the company significantly outperforming estimates, were not entirely satisfied with the latest figures. Consequently, futures for the United States markets trended lower, with the Nasdaq and S&P 500 both seeing slight declines. The broader market sentiment is currently dominated by questions regarding the long-term profitability of artificial intelligence. Richard Clode, a portfolio manager at Janus Henderson Group plc, highlighted that the focus has shifted from immediate performance to the future of capital spending. > The debate has been much less about stellar near-term results and more about the sustainability of AI capex spending given concerns around its quantum, monetisation and cashflow degradation. In regional equity markets, the Nikkei in Japan rose by 0.15%, while the KOSPI in South Korea posted a strong 3% gain. The regional benchmark index from MSCI Inc. advanced 0.65%. Conversely, the Hang Seng Index in Hong Kong fell 0.76%, and the CSI300 index in China eased by 0.2%. The Japanese yen was a focal point for currency traders after the government nominated two academics to the central bank’s board who are viewed as proponents of economic stimulus. This move has created uncertainty regarding the Bank of Japan's path toward interest rate normalization. However, the yen managed to recover some losses, trading at 155.88 per dollar, supported by hawkish comments from board member Hajime Takata and signals from Governor Kazuo Ueda that future rate hikes remain a possibility. Geopolitical factors also influenced the market as officials from Washington and Iran prepared for a third round of negotiations in Geneva. The talks aim to resolve nuclear disputes and mitigate the risk of military conflict, which has kept oil prices elevated. Brent crude futures rose to $71.05 per barrel, while spot gold increased to $5,197.08 an ounce, reflecting a demand for safe-haven assets. Market analysts in Singapore noted that while the immediate reaction to tech earnings was one of relief, the underlying debate over valuations and disruption risks continues to influence trading strategies.