Asian Stocks Rise on Nvidia Earnings Boost; Yen Weakens as BOJ Rate Outlook Clouds

Asian stock markets climbed on Thursday after strong Nvidia earnings eased concerns about AI spending and rising costs, supporting a renewed risk-on mood across global markets. Investor sentiment improved as the chipmaker projected first-quarter revenue above market expectations, reinforcing confidence in continued Big Tech investment in artificial intelligence (AI) infrastructure.

Nvidia’s upbeat forecast helped calm recent volatility surrounding the AI trade, where traders have questioned the sustainability of heavy capital expenditure and long-term returns. Japan’s Nikkei surged to a record high in early trading, while South Korea’s KOSPI jumped 2%. MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.7%, reflecting broad regional strength.

Although Nvidia shares initially rallied in extended trading, gains later faded. Nasdaq futures slipped 0.25% and S&P 500 futures edged down 0.14%, while EUROSTOXX 50 futures rose 0.06%. Analysts noted that markets were relieved the AI capex cycle remains intact despite ongoing debate about monetization and cash flow pressures linked to AI expansion.

In currency markets, the Japanese yen remained under pressure amid uncertainty over the Bank of Japan’s monetary policy path. The yen hovered near a two-week low after Japan’s government nominated two academics seen as supportive of economic stimulus to the BOJ board. The move fueled speculation that further rate hikes could be delayed. The yen last traded at 156.01 per dollar, down about 0.6% for the week, despite modest support from a softer U.S. dollar.

Meanwhile, oil prices stayed elevated due to geopolitical tensions between the United States and Iran ahead of renewed nuclear talks. Brent crude rose to $71.04 per barrel, while U.S. crude reached $65.55. Gold prices also advanced 0.27% to $5,184.66 per ounce, supported by safe-haven demand as investors monitored global risks.