Asia stocks rise on U.S. court ruling, Nvidia earnings

May 29, 2025 (MLN): Asia-Pacific markets mostly advanced on Thursday, buoyed by a favorable U.S. court ruling against former President Donald Trump’s tariff policy and strong earnings from artificial intelligence giant Nvidia.

A U.S. federal court ruled that Trump exceeded his authority in imposing “reciprocal” tariffs, dealing a blow to one of the signature components of his economic agenda.

This legal development, coupled with Nvidia’s blockbuster earnings report, lifted investor sentiment across the region, as CNBC reported.

South Korea’s Kospi surged 1.76%, while the Kosdaq added 0.83%.

The Bank of Korea also played a role in boosting market confidence, cutting its policy rate from 2.75% to 2.5% its lowest level since August 2022 in line with economists' expectations.

Japan’s Nikkei 225 jumped 1.63%, with the broader Topix index rising 1.44%. Australia’s S&P/ASX 200 rose modestly by 0.31%.

In Greater China, Hong Kong’s Hang Seng index gained 0.84% and mainland China’s CSI 300 climbed 0.7%.

Indian markets also opened on a positive note, with the Nifty 50 up 0.29% and the BSE Sensex advancing 0.34%.

Investors across the region were particularly focused on Asian chip stocks after Nvidia reported a 73% year-over-year surge in its data center business, exceeding earnings and revenue expectations.

U.S. stock futures reflected the upbeat sentiment, with S&P 500 futures rising 1.44%, Nasdaq 100 futures jumping 1.76%, and Dow Jones Industrial Average futures climbing 483 points, or 1.15%.

This optimism followed a mixed session on Wall Street overnight.

The S&P 500 slipped 0.56% to close at 5,888.55, the Nasdaq Composite dropped 0.51% to 19,100.94, and the Dow Jones fell 244.95 points, or 0.58%, ending at 42,098.70, as investors digested fresh earnings results and the latest Federal Reserve meeting minutes.

The combination of dovish central bank moves in Asia, legal setbacks for Trump’s trade agenda, and robust corporate earnings out of the U.S. provided a strong catalyst for Thursday’s market rally.

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