Rate cut hopes lift Asian markets, as tech follows the Nvidia rise

On Thursday, most Asian markets saw increases as investors became more optimistic about falling interest rates globally. Meanwhile, regional technology shares soared in tandem with Nvidia's overnight advances in the hot topic of artificial intelligence.

The Wall Street closing record highs of the S&P 500 and NASDAQ gave favourable signals to regional markets. Weak labour market statistics contributed to the gains by heightening expectations that the Federal Reserve will lower interest rates by September.

Global excitement regarding reduced lending rates was further bolstered by the Bank of Canada's rate drop on Wednesday and the expectation of a widely anticipated cut by the European Central Bank on Thursday.

A focus on more labour market data led to a small increase in U.S. stock index futures during Asian trading.

Chip industry exposure stocks increased following the market darling On Wednesday, NVIDIA surged to a $3 trillion valuation amidst ongoing excitement surrounding AI. Positive remarks from ASML, the largest manufacturer of semiconductor equipment globally, appeared to bolster sentiment towards chipmakers.

The markets are betting that a rise in AI demand would contribute to a rise in chip demand worldwide.

The largest contract chipmaker in the world, TSMC, jumped 5% to a new high in Taiwan trading and is a major supplier to Nvidia.

Advantest, a Japanese manufacturer of semiconductor testing equipment and a supplier to Nvidia, saw a 5.2% increase. The largest chip manufacturer in China, Semiconductor Manufacturing International, saw a 3.7% increase in Hong Kong commerce.

Key Events Today:

• UK Construction PMI
• ECB Interest Rate Decision
• US Initial Jobless Claims

(Sources: investing.com, reuters.com)