asian Marketsโค Rise Amid โฃnvidia Chip Ban Report, Anticipation of โBank 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.Southโ korea’s Kospi rose โ1.13% to 2,741.23.
Shares of SK Hynix,โข a memory chip supplier to Nvidia, increased by 5.85%. โคTSMC, Nvidia’s manufacturer of high-performance graphics processingโฃ units, saw a 1.58% rise.โ Samsung Electronics was up 2.94%. Advantest gained 4.95%, while โคTokyo Electronโฃ jumped โ4.97%.
The Bankโ of Japan โขbegan itsโฃ two-day policy meeting,with most โeconomists predicting steady policy rates. HSBC โฃanticipates no change in the upcoming meetingโฃ but forecasts a 25 basis point hike to 0.75%โฃ at the October meeting.”Bank of Japan officials are looking for signs of economic โคresilience, andโข weโ believeโ that the second โคquarter GDP print, which outperformed market expectations, certainlyโ delivered,” HSBC economists wrote. โฃ
U.S. โstock โฃfuturesโข edged โhigherโฃ as โฃinvestors reactedโ toโ the Federal โคReserve’sโ recent โrate cut. Overnight, the Dow โJones Industrial Average โclosed up 260.42 points, or 0.6%, at 46,018.32, after reaching an all-time high. The โคS&P 500 settled down 0.1% at 6,600.35, and the Nasdaq Composite dropped โ0.3% โคto 22,261.33.
“In additionโข to theโ political jabsโ aimed at them, theโ Fed is in a tough spot. They expect stagflation, or โhigher inflation and a weaker labor market.That is not aโ great environment for financial assets,” said Jack McIntyre, Portfolio Manager at Brandywine Global.