Asian stocks advanced for a third consecutive session on Thursday, with gains led by technology shares following Nvidia's better-than-expected quarterly results and upbeat guidance.
The MSCI's broadest index of Asia-Pacific shares excluding Japan climbed 0.7%, tracking overnight strength on Wall Street where the S&P 500 ended flat. Nvidia's shares surged 4.7% in after-hours trading after the chipmaker reported quarterly revenue that more than doubled and forecast third-quarter revenue above Wall Street estimates. The company's performance boosted sentiment across regional tech-heavy benchmarks, including South Korea's KOSPI, which rose 1.5%, and Taiwan's index, up 0.9%.
The Nikkei 225 lagged, declining 0.4% as the yen's strength weighed on exporters. The U.S. dollar index held at 99.12, near its highest level in a week, while the 10-year Treasury yield eased 1.5 basis points to 4.647%.
South Korea's central bank raised its benchmark interest rate by 25 basis points to 3%, citing inflation concerns. The move followed data showing the U.S. personal consumption expenditures (PCE) index rose 0.2% in July, with core inflation broadly in line with expectations but details indicating firmer price pressures ahead of the September Federal Open Market Committee meeting.
Commodities were mixed. Brent crude fell 0.7% to $87.20, extending its four-day losing streak amid ongoing supply concerns tied to geopolitical risks in the Strait of Hormuz. Westpac analysts noted that despite easing prices, oil market uncertainty persists due to escalating tensions in the Russia-Ukraine conflict. Gold rallied 0.7% to $4,624.14, rebounding from Wednesday's pullback, while Bitcoin and Ether gained 0.8% and 1.3% respectively.
Attention now turns to Fed Chair Kevin Warsh's speech in Jackson Hole, Wyoming, on Friday, which markets will scrutinize for clues on the timing of potential rate cuts amid evolving inflation dynamics.
