On a Thursday when Asian investors had begun to wonder whether the artificial intelligence rally could endure, Nvidia's strong revenue outlook gave the chip-heavy markets of the region a reason to breathe again. South Korea's KOSPI climbed back above the 4,000 mark and Taiwan recovered from two sessions of losses, while Indonesia celebrated a record high after its first current account surplus in ten quarters. Beneath the rebound lies a quieter tension: the rupiah remains fragile, and the central bank's decision to hold rates steady signals that stability may matter more than growth in the wee
Asian Tech Stocks Rally as Nvidia's Strong Outlook Eases AI Bubble Fears
One earnings forecast lifted markets from Seoul to Taipei after two days of doubt
Mark
Why did one company's earnings move markets from Seoul to Taipei?
Mimi
Because so much of Asia's market value sits in the chip supply chain. Samsung, SK Hynix and TSMC all depend on AI demand, so Nvidia's forecast reads like a signal for them too.
Luke
Worth noting the forecast is Nvidia's own, and Huang's dismissal of bubble fears comes from the person with most to gain from that view. The market believed it today. That's not proof.
Mark
The KOSPI is up 67% this year. Is that unusual?
Mimi
It's among the region's top performers, which is partly why a two-day drop of more than 3% got attention.
Luke
And one day's rebound of 1.9% doesn't erase the doubt that caused the drop. The reporting doesn't say the worry is resolved.
Mark
What about Indonesia, which hit a record?
Mimi
That's a different story: its first current account surplus in 10 quarters. But the rupiah was near a record low earlier in the week, and the central bank held rates to protect it.
Luke
Jeff Ng's 16,900 view is one analyst's forecast, not a certainty. Same for delayed rate cuts, which he says are possible, not decided.
Mark
So what should a reader watch?
Mimi
Whether the AI rally holds, and whether Indonesia can steady its currency.
Il Polso
- Two sessions of heavy losses in South Korea and Taiwan had left investors uneasy about whether the AI trade could sustain its momentum.
- Nvidia's upbeat forecast and its chief executive's dismissal of bubble talk cut through that anxiety and sent chip stocks sharply higher.
- Samsung Electronics, SK Hynix and TSMC led the recovery, with Taiwan's market snapping its losing streak with a 3.2% gain.
- Indonesia's stock index hit a record 8,491 points, yet the rupiah hovers near its lows and Bank Indonesia has chosen to hold rates to defend it.
- Analysts expect the currency to slip slightly toward 16,900 per dollar by year's end, and rate cuts may be pushed into next year.
On a Thursday when Asian investors had begun to wonder whether the artificial intelligence rally could endure, Nvidia's strong revenue outlook gave the chip-heavy markets of the region a reason to breathe again. South Korea's KOSPI climbed back above the 4,000 mark and Taiwan recovered from two sessions of losses, while Indonesia celebrated a record high after its first current account surplus in ten quarters. Beneath the rebound lies a quieter tension: the rupiah remains fragile, and the central bank's decision to hold rates steady signals that stability may matter more than growth in the weeks ahead.
On Thursday, South Korea's KOSPI closed above 4,000 and Taiwan's market bounced back, ending a stretch in which investors had begun to question whether the artificial intelligence rally could last. The turn came from across the Pacific. Nvidia forecast quarterly revenue well above what Wall Street expected, and its chief executive, Jensen Huang, pointed to strong demand from major cloud providers while brushing aside talk of an AI bubble. For markets so closely tied to the chip supply chain, the news was a welcome reversal after South Korea and Taiwan had slid more than 3% and 2% over the previous two sessions.
The KOSPI rose as much as 3.3% during the day and finished 1.9% higher, now up 67% for the year. Samsung Electronics gained 4.3% and SK Hynix 1.6%. In Taiwan, TSMC, the world's largest advanced chipmaker, climbed 4.3%, lifting the market 3.2%. Across the region, gains were more modest but broadly positive, and Indonesia's benchmark reached a record high after the country posted its first current account surplus in ten quarters.
Beneath the celebration, the currency picture stayed cautious. Bank Indonesia held interest rates steady for a second straight review, with Governor Perry Warjiyo saying the choice supported the rupiah, which had hovered near a record low earlier in the week. Analysts expect modest weakness toward 16,900 per dollar by year's end, and some believe authorities may postpone rate cuts until next year. The open question is whether the AI-fuelled rally can hold, and how long Indonesia must keep its policy on hold to protect its currency.
On Thursday, South Korea's KOSPI finished above the 4,000 mark, and Taiwan's market bounced back, after a week in which investors had started asking whether the rally in artificial intelligence stocks could last.
The trigger came overnight. Nvidia forecast quarterly revenue well above what Wall Street had expected. Chief executive Jensen Huang pointed to strong demand from major cloud providers and downplayed talk of an AI bubble. For Asian markets, which are heavily weighted toward the chip supply chain, the outlook was a welcome reversal. South Korea and Taiwan had slid more than 3% and 2% respectively over the previous two sessions as doubts about the sustainability of the AI trade spread.
The KOSPI jumped as much as 3.3% earlier in the day and closed 1.9% higher. It is now up 67% for 2025, making it one of the best-performing benchmarks in the region this year. Among its heavyweights, Samsung Electronics gained 4.3% and SK Hynix rose 1.6%.
Taiwan's market climbed 3.2%, ending its two-session losing streak. TSMC, the world's largest maker of advanced chips, rose 4.3%. The Nvidia results also lifted the MSCI index of emerging Asia equities and a broader gauge of Asian shares outside Japan, each by nearly 1%. The MSCI ASEAN index added 0.4%.
Southeast Asian markets were mostly in positive territory, though with smaller moves. Malaysian shares rose 0.3% and Singapore's 0.2%. Philippine stocks advanced more than 2%. Thailand gained 1.5%, helped by a 5.6% jump in Airports of Thailand.
Indonesia had its own reason to celebrate. Its benchmark index rose 1% to a record high of 8,491.428 points after the country reported its first current account surplus in 10 quarters, covering July to September.
The currency picture was more cautious. Bank Indonesia left interest rates unchanged at its second consecutive policy review the day before. Governor Perry Warjiyo said the decision matched the bank's short-term priority of supporting the rupiah, which had hovered near a record low earlier in the week. The rupiah slipped 0.3% on Thursday. Jeff Ng, head of Asia macro strategy at Sumitomo Mitsui Banking Corp, said he sees some resilience but slight weakness toward 16,900 per dollar by the end of 2025, and that authorities, aiming for currency stability, may delay rate cuts until next year.
Elsewhere, regional currencies were subdued against a firm dollar. The Malaysian ringgit lost 0.3% and the Philippine peso 0.1%, while the Singapore dollar and Thai baht were largely unchanged. Separately, China left its benchmark lending rates unchanged for a sixth straight month, and a draft showed Japan's stimulus package would be worth $135 billion, its largest since the pandemic, according to Reuters. Whether the AI-driven gains hold, and how long Indonesia keeps rate cuts on hold to defend the rupiah, are the questions to watch next.
Citazioni salienti
We see some rupiah resilience but slight weakness towards 16,900 by end-2025; authorities may delay rate cuts till next year.— Jeff Ng, head of Asia macro strategy, Sumitomo Mitsui Banking Corp
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