(Feb 26): Asian equities looked set to advance Thursday, buoyed by a bullish turn on Wall Street, which gained momentum after the closing bell from an upbeat outlook by Nvidia Corp.
The chipmaker’s shares rose 0.7% in extended trading, having pared most of its earlier gains. US equity-index futures were little changed in early Asian trading after Nvidia forecast first-quarter revenue between US$76.4 billion and US$79.6 billion, topping estimates of US$72.8 billion.
Nvidia’s post-market gains capped a robust day for US stocks, with the S&P 500 up 0.8% and the tech-heavy Nasdaq 100 rising 1.4%. In other parts of the market, Treasuries fell across the curve and the dollar slipped. Precious metals whipsawed but remained in the green during Wednesday’s session. Bitcoin topped US$69,000 in a sign of shifting sentiment for the cryptocurrency.
The optimistic outlook from the artificial intelligence bellwether is likely to inject further vim into the AI trade, soothing concerns that a surge in valuations had outpaced fundamentals. By signaling the massive build-out of AI computing remains on track, the forecast could underpin earnings expectations across the semiconductor supply chain and provide a fresh boost for Asian chipmakers.
“Nvidia once again exceeded expectations,” said Jacob Bourne, analyst at Emarketer. “With billions more in capex planned by the hyperscalers this year, demand for Nvidia’s chips remains robust,” he said, referring to large US tech companies that are building out their AI infrastructure.
Nvidia’s results may provide a sense of calm for markets that are trying to price in the long-term impact of AI on businesses and economies around the world — a dynamic that has hit the software sector in recent weeks.
See also: Asian stocks rise after tech-led rebound in US
Investors have been so sensitive that a report from a little-known firm called Citrini Research outlining the potential AI risks to various industries — using hypothetical scenarios set in the future — jolted markets earlier this week. The disruptive potential of the technology has roiled stocks across sectors for weeks in what’s become known as the “AI scare trade.”
Wolfe Research conducted a poll that suggests most investors bet the AI “wrecking ball” that’s roiled markets is largely “overblown,” said Chris Senyek. However, participants viewed the “broadening out” trade as alive.
Asia has also been a beneficiary of the AI boom as traders pile into chipmakers such as Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co., viewing them as the “picks and shovels” of the AI supply chain.
See also: China gains as Asian stocks avoid AI angst in US
In commodities, oil wavered as traders balanced expectations of modest OPEC production hikes in April and bearish US government data against increasing pressure on Iran over its nuclear program. The Trump administration imposed sanctions on more than 30 entities that support Iranian oil and weapons sales.
In Asia, a busy day of economic data releases includes industrial production for Singapore, machine tool orders for Japan and an interest rate decision in South Korea. Bank of Japan official Hajime Takata is also set to speak.
Meanwhile, President Donald Trump is convening tech executives from firms including Amazon.com Inc., Meta Platforms Inc., Microsoft Corp. and Alphabet Inc. at the White House next week to sign pledges committing their companies to foot the electricity bill for energy-hungry data centers.
Trump will also sign a directive in the coming days raising his global tariff to 15% “where appropriate” and is seeking “continuity” with nations that struck trade deals, US Trade Representative Jamieson Greer said.
Corporate Highlights:
- Salesforce Inc. gave a lukewarm outlook for sales growth in the new fiscal year, fueling Wall Street’s worries that the software giant will lose out to new competitors in the age of AI.
- Qantas Airways Ltd. said profit climbed as new and less fuel-hungry Airbus SE aircraft increasingly replaced the airline’s aging domestic fleet.
- Lowe’s Co.’s sales guidance for the full year fell short of expectations, a sign the housing market will remain lackluster in the near term.
- First Solar Inc. issued a 2026 sales forecast below analysts’ estimates.
- Intuitive Machines Inc. announced a US$175 million strategic equity investment to support projects such as an expansion into technology for orbital data centers.
Some of the main moves in markets:
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Stocks
- S&P 500 futures were little changed as of 8:24 a.m. Tokyo time
- Hang Seng futures rose 0.7%
- Australia’s S&P/ASX 200 rose 0.5%
Currencies
- The Bloomberg Dollar Spot Index fell 0.2%
- The euro was little changed at US$1.1813
- The Japanese yen rose 0.1% to 156.21 per dollar
- The offshore yuan was little changed at 6.8536 per dollar
- The Australian dollar was little changed at US$0.7122
Cryptocurrencies
- Bitcoin fell 0.9% to US$68,318.99
- Ether fell 1.6% to US$2,068.22
Bonds
- The yield on 10-year Treasuries advanced two basis points to 4.05%
- Japan’s 10-year yield advanced 3.5 basis points to 2.140%
- Australia’s 10-year yield declined one basis point to 4.71%
Commodities
- West Texas Intermediate crude rose 0.4% to US$65.66 a barrel
- Spot gold rose 0.1% to US$5,170.74 an ounce
Uploaded by Jason Ng
