Stock markets across Asia are climbing following a recovery in U.S. markets, as investors navigate the volatile world of artificial intelligence investments where dramatic price swings have become the norm. The U.S. dollar has weakened slightly while Treasury bond yields edged up and oil prices gained about 0.6%.
Technology powerhouses South Korea, Taiwan and Japan are benefiting significantly from manufacturing the hardware that powers AI systems, turning massive capital expenditures into substantial profits. South Korea’s Kospi index has already jumped nearly 5% this week to reach a new all-time high, pushing its 2026 gains to an impressive 44%. Taiwan has posted similar weekly gains of 5% with yearly increases approaching 22%, outpacing even the tech-heavy Nasdaq.
Japan’s Nikkei has climbed 15% year-to-date and is receiving positive attention from market analysts who predict higher valuations for Japanese companies based on improved earnings and corporate governance. Deutsche Bank points out that Japanese investors currently hold $2.25 trillion in foreign equities, suggesting that even a small shift toward domestic investments could significantly boost the Nikkei and strengthen the yen.
Today’s market focus centers on AI industry leader Nvidia, which releases quarterly results that could dramatically impact global markets. According to LSEG projections, analysts expect profits to surge 62% for the quarter ending in January, with revenue jumping 68%. First-quarter revenue guidance is anticipated to show approximately 64% growth to $72 billion.
Nvidia has exceeded sales predictions for 13 consecutive quarters, making the magnitude of any earnings beat crucial for investor sentiment, with $2 billion above estimates for both fourth-quarter results and first-quarter guidance considered the minimum threshold. Market volatility expectations suggest Nvidia’s stock could move up or down 4.8% following the announcement, which may seem modest compared to past reactions but represents $226 billion in market value given the company’s massive size. The tech giant’s total market capitalization of $4.7 trillion now exceeds the entire annual economic output of countries like Japan or India.
During President Trump’s State of the Union address, artificial intelligence received brief mention as he unveiled a “rate-payer protection pledge.” This initiative would reportedly require major technology companies to construct their own power facilities for data centers, though specific implementation details and enforcement mechanisms were not provided.
Oil markets showed a slight decline when Trump expressed his “preference” for resolving nuclear tensions with Iran through “diplomatic” means, despite the substantial U.S. military presence building in the region. Overall, financial markets showed minimal reaction to the State of the Union, following typical patterns for such addresses.
Wednesday’s key market-moving events include Nvidia’s earnings announcement, German and French consumer confidence reports, final eurozone inflation data, and scheduled appearances by central bank officials including Sweden’s Erik Thedéen, Norway’s Ida Wolden, ECB’s Pedro Machado, and Federal Reserve presidents Thomas Barkin, Jeffrey Schmid and Alberto Musalem.
