Asian stocks rise for third day as Nvidia beats estimates

Asian stocks experienced a three-day rally on Thursday, as Nvidia's earnings report exceeded expectations, reigniting investor confidence after a recent spike in US inflation. The AI chipmaker's shares surged by 4.7% in after-hours trading, propelling S&P 500 e-mini futures up by 0.4%.

The MSCI Asia-Pacific index, excluding Japan, climbed 0.7%, on track to mark a third consecutive day of gains. Head of research at Pepperstone Group in Melbourne, Chris Weston, noted that Nvidia's business is "in absolutely rude health," suggesting a potential impact on suppliers within the supply chain.

South Korean shares, represented by the Kospi, rose 1.5%, while Taiwanese stocks increased by 0.9%. However, the Nikkei 225 saw a slight decline of 0.4%. Wall Street stocks edged upward overnight, with the S&P 500 closing flat after the personal consumption expenditures (PCE) index rose 0.2% in July, compared to a 0.1% decline in June.

Analysts from Societe Generale noted that while core PCE inflation appeared broadly in line with expectations, the details were firmer. This suggests a somewhat stronger inflation backdrop heading into the September Federal Open Market Committee (FOMC) meeting. The yield on the US 10-year Treasury bond fell 1.5 basis points to 4.647% as investors awaited Fed Chair Kevin Warsh's speech in Jackson Hole, Wyoming, for further insights on the US interest rate path.

Meanwhile, Brent crude oil prices dipped by 0.7% to US$87.20, on track to decline for a fourth consecutive day. The market's cautious outlook on the Strait of Hormuz and the health of global oil supply, amid renewed tensions between the US and Iran, contributed to the price drop. US crude oil futures continued to ease despite the uncertain outlook.