Nvidia Reports Strong Quarter, Boosting Global Market Sentiment

Nvidia stunned markets with a blowout third-quarter report, lifting guidance and boosting investor sentiment across the region. The chipmaker reported adjusted EPS of $1.30, surpassing expectations of $1.24, and revenue of $57 billion, above forecasts of $54.41 billion. Management also said demand for Blackwell and cloud GPUs is “off the charts” and projected roughly $500 billion in next-generation chip revenue through 2026. Shares rose more than 5% in late trade after closing up 2.8% in the cash session, driving broader equity gains.

Nvidia Reports Strong Quarter, Boosting Global Market Sentiment

In Japan, Bank of Japan board member Toyoaki Koeda signaled a stronger hawkish stance, saying rates must rise further to prevent distortions. Koeda said underlying inflation is near 2%, supported by tight labor market conditions and broadly solid economic activity. Analysts now see an increased probability of a December rate hike, although the yen weakened to 157.40 despite her comments. Japanese government bonds sold off sharply, with the 30-year yield hitting 3.37%, the 20-year 2.85%, and the 10-year 1.80%. Chief Cabinet Secretary Kihara warned that recent yen moves were “sharp, one-sided” and flagged heightened speculative activity, but verbal intervention failed to stabilize the currency.

In Australia, RBA Assistant Governor Sarah Hunter cautioned against overreacting to last quarter’s inflation surprise, noting that sustained above-trend growth could generate new inflation pressures. Policymakers reassess their easing bias after three cuts this year.

China’s central bank maintained its Loan Prime Rates at 3.0% (1-year) and 3.5% (5-year) for a sixth consecutive month, signaling a cautious approach amid soft credit demand. Policymakers are reportedly considering new stimulus measures to support the weakening property market, which lifted real estate shares. The PBOC set today’s USD/CNY reference rate at 7.0905, slightly below estimates of 7.1201.

The White House urged Congress to oppose legislation restricting Nvidia’s advanced-chip exports to China, reflecting concerns about the potential geopolitical and economic fallout. Meanwhile, the U.S. approved major AI-chip sales to the UAE and Saudi Arabia under strict safeguards targeting China.

Asia-Pacific equities closed mostly higher: Japan’s Nikkei 225 jumped 2.6%, Australia’s S&P/ASX 200 rose 1.18%, Shanghai Composite gained 0.38%, and Hong Kong’s Hang Seng inched up 0.14%.

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