Asian Markets Rally as AI Momentum Returns, Oil Prices Ease; India Joins Global Upswing

Asian markets witnessed a broad rally on Thursday as easing oil prices and cooling bond yields revived investor confidence across global equities. The optimism followed a strong rebound on Wall Street and renewed enthusiasm around artificial intelligence-led growth, particularly after chip giant Nvidia delivered another blockbuster earnings report.

Nvidia reported that its profit surged more than 200% year-on-year during the February–April quarter, while revenue climbed 85%, reflecting sustained global demand for advanced AI chips powering data centres and generative AI systems. Although Nvidia shares closed 1.3% higher before earnings and slipped in after-hours trading, the results reinforced confidence in the broader technology sector.

South Korea led the regional gains, with the KOSPI soaring 8% to fresh record territory above 8,000. Technology stocks drove the rally after [Samsun)g Electronics] climbed 7.5% following a labour agreement that prevented a strike. Meanwhile, memory-chip maker [SK hynix] jumped 11.3%, supported by its close partnership with Nvidia in supplying AI infrastructure.

Taiwan also joined the rally, with the TAIEX advancing 3.9%. Shares of [TSMC], the world’s largest contract chip manufacturer, rose 3%, underscoring continued investor confidence in semiconductor demand.

Japan posted another strong session as the Nikkei 225 climbed 3.6% to 61,930.44. Government data showing nearly 15% growth in exports in April helped offset concerns surrounding disruptions linked to tensions involving Iran.

Chinese markets remained comparatively subdued. The Hang Seng Index traded flat at 25,648.28 while the Shanghai Composite Index remained largely unchanged at 4,162.37.

**India Extends Momentum Amid Global Risk-On Sentiment**

India also participated in the broader global market optimism. Benchmark indices on Dalal Street moved higher as easing crude concerns and strength in global technology stocks improved investor sentiment. The BSE Sensex and NIFTY 50 gained support from information technology, financial, and energy counters.

Indian IT companies benefited from renewed confidence in global AI spending and expectations that lower bond yields in the US could support technology investment cycles. Lower crude prices also offered relief for India, one of the world’s largest oil importers, easing concerns around inflation and current account pressures.

Australia’s S&P/ASX 200 added 1.6%, reflecting broader regional optimism.

Oil markets remained volatile. Brent crude recovered modestly to $105.87 per barrel after falling 5% a day earlier, while US crude rose to $99.18. However, prices remain significantly above pre-conflict levels near $70, with traders closely monitoring diplomatic developments surrounding Iran and global supply expectations.

On Wall Street overnight, the S&P 500 gained 1.1%, ending a four-day losing streak. The Dow Jones Industrial Average rose 1.3%, while the Nasdaq Composite advanced 1.5%, led by technology stocks.

Chipmakers extended gains, with [Advanced Micro Devices (AMD)] rising 8.1% and [Intel] gaining 7.4%.

The rebound was supported by easing bond yields, as the US 10-year Treasury yield dropped to 4.57% from 4.67%. Lower yields reduce borrowing costs and support valuations across equities, especially growth sectors like AI and technology.

Markets now remain focused on whether inflation pressures ease sufficiently for major central banks, including the Federal Reserve, to avoid further tightening and potentially consider interest-rate reductions later in the year. (AP)