Nvidia has injected share markets with confidence (I-Hwa CHENG) <\/p>\n
Most stock markets rallied on Thursday after strong earnings from chip titan Nvidia eased fears of an AI bubble.<\/p>\n
Investors’ attention turned to the delayed US September jobs report, due later in the day, for clues about the outlook for interest rates.<\/p>\n
London, Paris and Frankfurt all advanced after a largely positive session in Asia.<\/p>\n
Japan surged around three percent, while Hong Kong ended flat and Shanghai closed slightly lower.<\/p>\n
Global equities have struggled recently on warnings that tech valuations may be due a pullback after this year’s record-breaking rally.<\/p>\n
But Wednesday’s report from AI bellwether Nvidia topped expectations on fierce demand for its advanced chips, with chief executive Jensen Huang brushing off fears of a bubble.<\/p>\n
“Nvidia’s results have completely changed the market mood and pushed out any bubble fears for another day,” said Jim Reid, managing director at Deutsche Bank.<\/p>\n
Shares in the firm — which last month became the world’s first $5 trillion stock — rose more than five percent in post-market trade, while S&P 500 and Nasdaq futures also soared.<\/p>\n
Tech stocks led the gains in Asia. South Korea’s Samsung and SK hynix, Taiwan’s TSMC and Japanese investment giant SoftBank all enjoyed a strong day.<\/p>\n
However, SPI Asset Management’s Stephen Innes warned: “This is still a market balancing on a wire stretched between AI euphoria and debt-filled reality.”<\/p>\n
The upbeat report helped counterbalance minutes from the Federal Reserve’s October policy meeting, which suggested officials are against cutting rates for the third time in a row next month.<\/p>\n
A run of soft labour market reports had previously boosted bets on a string of rate reductions, lifting equities in turn.<\/p>\n
But Fed boss Jerome Powell dampened the mood last month when he warned that a December cut was “not a foregone conclusion”.<\/p>\n
Thursday’s release of US jobs data for September — delayed by the government shutdown — will be closely watched.<\/p>\n
“Unless we see a particularly concerning jobs report today, it looks likely that the next rate cut comes in 2026,” said Joshua Mahony, chief market analyst at Scope Markets.<\/p>\n
The data carries extra weight as the Bureau of Labor Statistics said it would not publish its October figures, instead rolling them into November’s full report on December 16.<\/p>\n
The pullback in US rate cut expectations sent the dollar to its strongest level against the yen since January, spurring talk of an intervention by Japanese authorities.<\/p>\n
The yen was already under pressure from concerns about Japan’s fiscal outlook before the expected release of a stimulus package by Prime Minister Sanae Takaichi.<\/p>\n
Worries that she will push for more borrowing have hit the currency and sent bond yields to record highs.<\/p>\n
In company news, shares in Games Workshop jumped more than 10 percent on London’s FTSE 100 after it forecast strong earnings and increased dividends.<\/p>\n
– Key figures at around 1115 GMT –<\/p>\n
London – FTSE 100:\u00a0UP 0.8 percent at 9,579.48 points<\/p>\n
Paris – CAC 40: UP 0.8 percent at 8,020.69<\/p>\n
Frankfurt – DAX: UP 1.1 percent at 23,408.01<\/p>\n
Tokyo – Nikkei 225:\u00a0UP 2.7 percent at 49,823.94 (close)<\/p>\n
Hong Kong – Hang Seng Index: FLAT at 25,835.57 (close)<\/p>\n
Shanghai – Composite: DOWN 0.4 percent at 3,931.05 (close)<\/p>\n
New York – Dow: UP 0.1 percent at 46,138.77\u00a0(close)<\/p>\n
Dollar\/yen: UP at 157.47 yen from 157.01 yen on Wednesday<\/p>\n
Euro\/dollar: DOWN at $1.1518 from $1.1526<\/p>\n
Pound\/dollar: UP\u00a0at $1.3066 from $1.3048<\/p>\n
Euro\/pound:\u00a0DOWN at 88.14 from 88.33 pence<\/p>\n
West Texas Intermediate:\u00a0UP 0.9 percent at $59.95 per barrel<\/p>\n
Brent North Sea Crude: UP 0.7 percent at $63.97\u00a0per barrel<\/p>\n
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