Investing.com– Asian stocks rallied sharply on Thursday as upbeat results from AI bellwether reignited demand for technology shares, while Samsung Electronics surged after reaching a tentative wage deal with its union to avert a potential strike.
Wall Street ended higher on Wednesday before Nvidia’s results.
U.S. stock index futures traded near flatline levels after losses in early Asian hours.
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surges 8%, Samsung reaches deal to avert union strike
South Korea’s KOSPI surged 7.9% to 7,777.27 points in its strongest session in months.
Heavyweight Samsung Electronics () also advanced nearly 8% after the company and its labour union reached a last-minute tentative pay agreement, suspending plans for an 18-day strike involving nearly 48,000 workers.
The deal eased concerns over potential disruptions to global memory chip supplies amid booming AI demand.
Chip stocks rebound after Nvidia earnings
Technology shares across the region were further boosted after Nvidia delivered stronger-than-expected quarterly earnings and optimistic revenue guidance, reinforcing investor confidence in sustained artificial intelligence spending.
The upbeat earnings lifted chip-related shares across Asia. Investors viewed Nvidia’s results as another sign that demand for high-end AI processors and data center infrastructure remained resilient.
Investor sentiment was also aided by easing geopolitical tensions after some oil tankers resumed passage through the Strait of Hormuz, calming fears of major energy supply disruptions.
President Donald Trump said the administration was in the “final stages” of negotiations with Iran, raising hopes for a potential easing in Middle East tensions.
Japan’s climbed 3.7%, while the broader index rose 2.1%.
Australia’s S&P/ASX 200 climbed 1.6% after weak jobs data lessened risks of further Reserve Bank of Australia rate hikes.
India’s rose 0.6%, while Singapore’s edged 0.3% higher.
Chinese markets lagged regional peers, with investors remaining cautious over the outlook for the property sector and the pace of additional policy support from Beijing.
China’s blue-chip index rose 0.6%, while the index traded flat.
Hong Kong’s index was also muted, bucking the regional trend.
Australia jobs data, Japan trade and PMI in focus
Markets also digested a raft of regional economic data.
Australia’s climbed to 4.5% in April, the highest since late 2021, after employment unexpectedly fell, strengthening expectations the Reserve Bank of Australia could pause its tightening cycle.
In Japan, rose strongly in April, although business activity data showed the services sector slipping back into contraction while manufacturing growth remained steady, highlighting a fragile recovery in the world’s fourth-largest economy.
Japan’s factory activity expanded for an 11th straight month in May, though growth slowed slightly as manufacturers navigated softer external demand and rising input costs.