asian Markets Rise Amid nvidia Chip Ban Report, Anticipation of Bank of Japan Decision
Asian stock markets experienced gains Wednesday following reports of a Chinese ban on Nvidia‘s artificial intelligence chips. Japan’s Nikkei 225 climbed 0.73%, closing at 38,787.38.South korea’s Kospi rose 1.13% to 2,741.23.
Shares of SK Hynix, a memory chip supplier to Nvidia, increased by 5.85%. TSMC, Nvidia’s manufacturer of high-performance graphics processing units, saw a 1.58% rise. Samsung Electronics was up 2.94%. Advantest gained 4.95%, while Tokyo Electron jumped 4.97%.
The Bank of Japan began its two-day policy meeting,with most economists predicting steady policy rates. HSBC anticipates no change in the upcoming meeting but forecasts a 25 basis point hike to 0.75% at the October meeting.”Bank of Japan officials are looking for signs of economic resilience, and we believe that the second quarter GDP print, which outperformed market expectations, certainly delivered,” HSBC economists wrote.
U.S. stock futures edged higher as investors reacted to the Federal Reserve’s recent rate cut. Overnight, the Dow Jones Industrial Average closed up 260.42 points, or 0.6%, at 46,018.32, after reaching an all-time high. The S&P 500 settled down 0.1% at 6,600.35, and the Nasdaq Composite dropped 0.3% to 22,261.33.
“In addition to the political jabs aimed at them, the Fed is in a tough spot. They expect stagflation, or higher inflation and a weaker labor market.That is not a great environment for financial assets,” said Jack McIntyre, Portfolio Manager at Brandywine Global.
