Asian Stock Markets Rise as Investors Track Wall Street Rally

Tech shares lead gains ahead of Nvidia earnings, while China lags on deflation concerns

Asia Follows Wall Street Higher

Asian stock markets climbed on Wednesday, mirroring a strong overnight rally on Wall Street. Sentiment was boosted by President Trump’s delay of planned US-EU trade tariffs and signs of stabilisation in the US bond market.

The S&P 500 surged over 2% overnight, and S&P 500 futures held steady at 5,934.0 points during Asia trading hours.

Tech Sector Outperforms on Nvidia Optimism

Technology stocks led the region's gains, driven by robust quarterly results from Xiaomi and investor anticipation of Nvidia’s earnings due later today.

• Japan’s Nikkei 225 rose 0.6%
• South Korea’s KOSPI jumped 1.8%, hitting a nine-month high
• SK Hynix and Samsung Electronics gained 2.7% and 3.3% respectively
• Taiwan’s TSMC and Hon Hai (Foxconn) edged up by 0.5% each
• Advantest Corp, a Japanese Nvidia supplier, rose 2.2%

Investors are heavily positioning around AI and semiconductor stocks, expecting Nvidia to deliver another strong set of results fuelled by continued investment in AI infrastructure by major US tech firms.

However, Nvidia's outlook on AI demand and China will be closely watched, especially amid tightening US export restrictions on advanced chips to Beijing.

Mixed Performance Across Asia

China Slips on Deflation and Weak Earnings

Chinese equities underperformed due to ongoing concerns over deflation and subdued consumer spending:

• Shanghai Composite and CSI 300 posted slight losses
• Hong Kong’s Hang Seng fell 0.3%

Shares in PDD Holdings declined following disappointing earnings, with profits nearly halved due to intense domestic competition and weaker international growth, particularly in its Temu platform. These results followed similarly underwhelming numbers from Alibaba.

Although Xiaomi posted record Q1 profits and rose 1.6%, the overall mood remained cautious.

Australia and Southeast Asia See Modest Gains

• Australia’s ASX 200 rose 0.2%, lagging behind peers due to stronger-than-expected inflation data, which may delay interest rate cuts from the Reserve Bank of Australia
• Singapore’s Straits Times Index climbed 0.4%
• Japan’s TOPIX added 0.5%

India Poised for Weaker Open

Futures for India’s Nifty 50 fell 0.1%, suggesting a sluggish start as the index struggles to break above the key 25,000-point resistance level.

Tech Stocks Lift Asia Ahead of Nvidia Earnings

• Wall Street rally and tariff delay boost Asian sentiment
• Tech shares soar, led by Nvidia suppliers and AI-related stocks
• China lags as deflation and poor consumer data weigh on confidence
• Australia’s inflation surprise tempers rate cut expectations
• Investors await Nvidia’s guidance on AI and China exposure

The global tech sector remains the focal point, with Nvidia’s performance expected to shape short-term investor sentiment across both Western and Asian markets.

Sources: (Investing.com, Reuters)