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Nikkei share average hits record high

Nikkei-225

However, the regional sentiment was tempered by the struggle in Chinese stock markets to extend multi-month highs hit amid Beijing’s stimulus efforts

Japan’s Nikkei share average topped its all-time high on Thursday, after unexpectedly strong revenue forecasts from U.S. chip designer Nvidia boosted Asian tech stocks.

However, the regional sentiment was tempered by the struggle in Chinese stock markets to extend multi-month highs hit amid Beijing’s stimulus efforts.

Long-term U.S. bond yields hit three-month highs while the dollar sagged after minutes from the last FOMC meeting confirmed the view that interest rate reductions would be slow in coming, but were not markedly more hawkish than the Federal Reserve’s previously expressed views.

The Nikkei 225 share average soared 2% to reach 39,029.00, topping the previous all-time peak of 38,957.44, set on December 29, 1989, at the peak of the so-called bubble economy.

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.29%, helped by a 0.69% increase for Taiwan’s stock benchmark.

The Hang Seng was 0.17% higher, recovering from earlier losses, to put the benchmark on course to extend a seven-day winning streak.

Mainland blue chips were up 0.29%, after wavering throughout the session between small gains and losses.

U.S. stock index futures indicated solid gains, after a mixed session on Wednesday for the major benchmarks. S&P 500 futures surged 0.7% and tech-focused Nasdaq futures climbed 1.4%.

Following the closing bell overnight, Nvidia forecast around 233% jump in quarterly revenue, sending its shares up nearly 10% higher after-hours.

The Nikkei has climbed nearly 16.5% already this year, with the S&P 500 and Nasdaq soaring nearly 5% each, driven in large part by huge expectations for AI, with Nvidia’s chips at the centre of that boom.

Nvidia’s earnings beat boosted sentiment and eased concerns over stretched valuations, providing room for the artificial intelligence theme to continue to drive markets, Saxo Markets analysts stated in a research note.

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