Stocks climb on Nvidia earnings, Samsung strike suspension

Asian stocks surged on Thursday as some vessels resumed passage through the Strait of Hormuz, while forecast-beating results at Nvidia and a suspended workers' strike at Samsung Electronics lifted shares of chipmakers. MSCI's broadest index of Asia-Pacific shares outside Japan climbed 2.7%, snapping a four-day streak of losses. South Korea's KOSPI leapt more than 8% and Taiwanese shares rose almost 4%. Chinese shares bucked the trend, with blue chips shedding 0.5%. In early European trade, pan-region futures were down 0.2%, German DAX futures nudged 0.1% lower, and FTSE futures slid 0.4%. Brent crude futures climbed 0.9% to $106 a barrel in Asia trade, retracing declines after three supertankers passed through the strait on Wednesday and Iran consolidated its control of the waterway. Supply concerns persisted, however, following a U.S. inventory drawdown. On Wall Street on Wednesday, the S&P 500 rose 1.1%, while the Nasdaq Composite rallied 1.5% after three days of declines, as President Donald Trump said the United States was ready to proceed with further attacks on Iran if Tehran did not agree to a peace deal, but suggested Washington could wait a few days to "get the right answers". S&P 500 e-mini futures slipped 0.1% in Asia trade and Nasdaq e-mini futures were down by a similar amount. "Futures on the Nasdaq and the S&P 500 are flat this morning following Nvidia’s results, but this comes after markets steamed ahead yesterday as the anticipation of good news on Iran brought oil prices and yields lower," said Jim Reid, head of global macro research at Deutsche Bank in London. "That positivity has carried over into Asian markets." Asian chipmakers' shares rose after Nvidia's better-than-expected revenue forecast on Wednesday as CEO Jensen Huang aimed to reassure investors that the world's most valuable company can sustain blockbuster growth in demand for its flagship AI chips. "The chip landscape remains Nvidia’s world with everybody else paying rent, as more sovereigns and enterprises wait in line for Nvidia's chips," said Dan Ives, global head of technology research at Wedbush Securities in New York. However, Nvidia's shares fell 1.3% in extended trading. "The market’s reaction was relatively muted by its own lofty standards," said Tony Sycamore, market analyst at IG in Sydney. "The lack of any China sales in the outlook and guidance that was only modestly ahead of expectations left some investors wanting a bit more fireworks." Samsung Electronics shares surged more than 8% after the electronics giant's union said it would suspend industrial action upon reaching a tentative pay deal with the company, averting a strike by nearly 48,000 workers that threatened South Korea's economy and global chip supply. However, the rally was blunted after a shareholder group said the management's tentative pay deal with its labour union was illegal, adding that it would file for an injunction if it is approved by union members, the Yonhap News Agency reported on Thursday. Japan's Nikkei 225 share index jumped 3.2% after S&P Global's flash manufacturing PMI showed expansion in May. Separately, Japanese exports rose 14.8% year-on-year in April, finance ministry data showed. "By and large, external demand has turned out exceptionally strong despite the U.S.-Iran conflict," analysts from DBS wrote in a research report. "This could give BOJ the confidence to hike in June, which should lift the yen if there are no fiscal mishaps." Against the yen, the dollar was 0.1% stronger at 159.015 yen. Australian shares rose 1.5%, lagging the regional rally after a mixed set of economic indicators. The Aussie dollar sank 0.4% to $0.7112 after Australian employment unexpectedly fell in April, while the jobless rate jumped to the highest since late 2021, a possible sign the labour market might be loosening enough to stave off a near-term rate hike from the Reserve Bank of Australia. The yield on the U.S. 10-year Treasury bond was up 1.8 basis points at 4.586%, resuming its climb after snapping a three-day streak of declines on Wednesday. Minutes from the Federal Reserve's April 28-29 meeting showed policymakers' concerns about inflation intensified last month, with a growing number open to the possibility they may need to raise interest rates. Gold slipped 0.2% to $4,533.50, while bitcoin nudged up 0.2% to $77,832.41 and ether rose by the same magnitude to $2,139.64.