Asian equities rose sharply as Nvidia Corp.’s positive forecast for artificial intelligence (AI) boosted investor sentiment, while attention remained on ship traffic through the strategic Strait of Hormuz amid heightened crude oil prices.
The MSCI Asia Pacific Index climbed 1.2%, with technology giants such as Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co. leading the gains. South Korea’s benchmark index, a bellwether for AI-related technology, jumped 2.5%.
Nvidia’s projection that it could generate at least $1 trillion in revenue from AI chips through the end of 2027 has fueled optimism among tech investors. “Optimism is returning to Asian tech, but it’s earned, not assumed,” said Oriano Lizza, a sales trader at CMC Markets Singapore. “The optimism is real, but it lives in the semiconductor supply chain. Investors need to be precise about where they’re positioned.”
Asian technology stocks — viewed as less exposed to the Middle East conflict — are drawing attention as the “picks and shovels” of the AI supply chain buildout. The sector has rebounded from April lows triggered by former President Donald Trump’s tariff announcements, as companies continue investing billions into AI development.
Meanwhile, crude oil prices surged 2.9%, reflecting concerns over regional supply disruptions, highlighting the ongoing geopolitical risks impacting energy markets.
