Market euphoria with Nikkei and tech on the rise

The markets today are driven by the advance of the Japanese Nikkei and the tech sector after the accounts of the US giant Nvidia.
Asian stocks rose and US stock futures also gained as Nvidia's better-than-expected sales forecast led the advance, providing fresh impetus to the AI-driven global rally.
The Japanese Nikkei stock average surpassed its all-time high and the index closed the session with +2.13%.
Chinese stocks recovered from early weakness and ended the session above parity on optimism over Beijing's stimulus efforts.
Long-term U.S.
bond yields hit three-month highs as the dollar fell following January Fed meeting minutes.
The minutes confirmed the view that interest rate cuts are likely to be slow in coming, without accentuating an aggressive tone.
In Europe, stock futures are rising.
Key data such as inflation and PMIs for the Eurozone are expected during the day.
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What happens today? Japan's Nikkei 225 hit an all-time high on Thursday, fueled by banking, electronics and consumer stocks, as robust earnings and investor-friendly measures fuel a strong rally in Japanese stocks this year.
The index jumped nearly 2% to reach 39,029, surpassing the previous record of 38,915.87 reached in 1989.
Both the Nikkei and the broader Topix posted impressive performances in the Asia-Pacific region, rising by more than 10% this year after rising more than 25% in 2023 — their respective best annual gains in at least a decade.
The rally has also been supported by a weakening yen, which has lost about 6% against the dollar this year and appears on track to fall to 33-year lows hit late last year.
The Nikkei has jumped nearly 17% already this year, with the S&P 500 and Nasdaq up about 5% each, driven largely by huge expectations for artificial intelligence (AI), with chips from Nvidia at the center of that boom.
Precisely the accounts of the US giant have emphasized the euphoria of investors.
US stock futures showed a sharp advance in Asian trading following Nvidia's results.
Shares of the technology company rose as much as 11% in post-market trade after it said first-quarter revenue was likely to reach $24 billion, above previous estimates of about $22 billion.
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Who are the chip billionaires? The fiscal data was expected to act as a catalyst for global equities and it delivered on its promise.
Nvidia's Asian suppliers SK Hynix Inc and Advantest Corp rose as did the regional index of semiconductor companies.
“As Nvidia goes, so goes the market,” said Kim Forrest, chief investment officer at Bokeh Capital Partners LLC.
“And it seems like the results are quite good.
This confirms the narrative that Artificial Intelligence will continue to be strong in the foreseeable future,” he added.

Author: Hermes A.I.

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