Asian equity markets moved decisively higher on Thursday as a mix of corporate results, industrial labor developments and shifting geopolitical signals pushed investors back toward risk assets.
At the center of the rally were strong quarterly results from Nvidia, which reported better-than-expected earnings and optimistic revenue guidance. The report reinforced confidence that demand for high-end AI processors and related data center infrastructure remains robust, prompting a wave of buying in chip and technology stocks across the region.
South Korea’s benchmark KOSPI led gains, jumping 7.9% to close at 7,777.27 points in its most powerful session in months. Much of the upward move was tied to Samsung Electronics (KS:005930), which climbed almost 8% after the company and its labour union reached a last-minute tentative pay agreement. The pact halted plans for an 18-day strike that would have involved nearly 48,000 workers, easing investor worries about potential disruptions to global memory chip supplies at a time of elevated AI-driven demand.
Chip-related names broadly bounced following Nvidia’s results, as market participants interpreted the company’s performance and outlook as evidence that spending on advanced AI processors and data-center equipment is continuing to support semiconductor demand.
Markets elsewhere in Asia also saw notable moves. Japan’s Nikkei climbed 3.7%, while the broader TOPIX index rose about 2.1%. Australia’s S&P/ASX 200 gained 1.6% after weaker-than-expected jobs data reduced the perceived likelihood of further rate hikes from the Reserve Bank of Australia. India’s Nifty 50 increased 0.6%, and Singapore’s Straits Times Index edged up roughly 0.3%.
Chinese equities lagged some regional peers amid lingering caution over the property sector and uncertainty about the pace of additional policy support from Beijing. The Shanghai Shenzhen CSI 300 rose 0.6%, while the Shanghai Composite was effectively flat. Hong Kong’s Hang Seng index remained muted and did not participate fully in the regionwide advance.
Investor sentiment was also supported by signs of easing geopolitical pressure in the Middle East after reports that some oil tankers had resumed passage through the Strait of Hormuz, which reduced near-term concerns about major energy supply disruptions. Separately, President Donald Trump said the administration was in the "final stages" of negotiations with Iran, a comment that market participants viewed as raising hopes for a potential easing in tensions.
U.S. stock index futures traded near flat following earlier losses in Asian trading hours. Wall Street had finished higher on Wednesday ahead of Nvidia’s results, which arrived after the U.S. market close.
Regional economic releases also shaped market moves. Australia’s unemployment rate rose to 4.5% in April, the highest reading since late 2021, driven by an unexpected fall in employment. That development reinforced expectations that the RBA could pause its tightening cycle. In Japan, exports expanded strongly in April, but business activity indicators showed the services sector slipping back into contraction even as manufacturing growth held steady, underscoring a fragile recovery. Japan’s factory activity expanded for an 11th consecutive month in May, though growth decelerated modestly as manufacturers coped with softer external demand and rising input costs.
Overall, the market reaction combined corporate earnings momentum, averted industrial action in a strategically important semiconductor hub, mixed domestic economic data and improving short-term geopolitical signals to produce a broad-based rally dominated by technology and chip-related stocks.
Market snapshot:
- KOSPI: +7.9% to 7,777.27
- Samsung Electronics (KS:005930): ~+8%
- Nikkei: +3.7%
- TOPIX: ~+2.1%
- S&P/ASX 200: +1.6%
- Shanghai Shenzhen CSI 300: +0.6%
- Shanghai Composite: flat
Note: All moves described above reflect reported market closes and company announcements that shaped trading on the day.