Asian Tech Stocks Rebound Ahead of Nvidia Earnings

Asian technology and semiconductor stocks rebounded on Tuesday and Wednesday, driven by investor anticipation of Nvidia's fiscal second-quarter earnings report. The recovery followed a sharp selloff in the artificial intelligence trade caused by profit-taking and elevated Treasury yields.

South Korea's KOSPI rose 0.68 percent on Tuesday to 6,742.74 and climbed further by 1.8 percent on Wednesday. Japan's Nikkei 225 gained 0.9 percent and China's CSI 300 rose 1.2 percent. Memory suppliers Samsung Electronics and SK Hynix saw gains of 1.8 percent and 1.9 percent respectively on Wednesday, reflecting their sensitivity to Nvidia's outlook for high-bandwidth memory in AI data centers. In China, SMIC Corporation shares jumped 3.5 percent.

Other corporate movements in South Korea included share price increases for Kia and Hyundai Motor Company after Hyundai's union reached a tentative agreement with management to end a strike. However, union members at SK Hynix narrowly rejected a separate tentative wage agreement. Market participants are now focusing on Nvidia's reported revenue, expected to be approximately $92 billion, to determine if the AI trade can regain momentum despite concerns over borrowing costs and stretched valuations.