Asian equities rose as Nvidia Corp.’s upbeat outlook for artificial intelligence lifted sentiment, with investors keeping a close eye on ship traffic through the vital Strait of Hormuz. Crude oil jumped 2.9%.
The MSCI Asia Pacific Index advanced 1.2%, with gains led by technology shares such as Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co. South Korea’s benchmark, a bellwether for AI, jumped 2.5%.
That came after Nvidia said it expects to generate at least $1 trillion in revenue from AI chips through the end of 2027. “Optimism is returning to Asian tech, but it’s earned, not assumed,” said Oriano Lizza, a sales trader at CMC Markets Singapore.
“The optimism is real, but it lives in the semiconductor supply chain. Investors need to be precise about where they’re positioned.” Asian technology shares — seen as less exposed to the conflict in the Middle East — are drawing renewed attention as the region’s firms are viewed as the “picks and shovels” of the AI supply chain buildout.
Stocks have rallied from their April lows, triggered by President Donald Trump’s tariff announcement, on bets that the billions companies are spending on AI will pay off.
