Asian markets rebounded strongly on Wednesday, driven by solid earnings from artificial intelligence heavyweights Super Micro Computer and SpaceX that eased investor anxiety following a sharp regional selloff.
by.mark.thompson business editor
Super Micro and SpaceX Earnings Ignite Technology Recovery
Asian equities advanced on Wednesday as stronger-than-expected financial reports from major artificial intelligence beneficiaries revived confidence across the technology sector. The MSCI Asia Pacific index climbed 1.1%, snapping two sessions of losses and helping regional chipmakers recover from last week’s market correction.
Super Micro Computer surged 16% in extended trading after announcing a preliminary fiscal first-quarter revenue expectation between $18.5 billion and $19.5 billion, sailing past its prior guidance of $14.5 billion to $15.5 billion. Meanwhile, SpaceX reported its first quarterly profit as a public company, posting net income of $4.4 billion for the July-September period—more than double analyst expectations and a reversal from a $1.1 billion loss a year earlier. Revenue climbed 161% to $14.6 billion, buoyed by deals renting computing power to artificial intelligence firms.
Clear earnings beats and constructive corporate updates are helping to ease some of the AI anxiety that has surfaced in recent sessions.
Tim Waterer, KCM Trade via Biggo
South Korean and Taiwanese Chipmakers Lead Regional Gains
Semiconductor stocks spearheaded the Asian market recovery, with South Korea and Taiwan recording the most pronounced jumps. South Korea’s KOSPI jumped 3.7%, while Taiwan’s Taiex gained roughly 1.4%. Memory-chip makers in Seoul posted substantial advances, as Samsung Electronics rose 7.1% and SK Hynix climbed 6.2%.
Japan’s Nikkei 225 and the TOPIX each advanced over 1%, supported by gains among regional components. Kioxia added 3.2% and Murata Manufacturing added 3.4%, while Taiwan Semiconductor Manufacturing Co. advanced 0.8% and Largan Precision gained 3.8%.
Divergent Fortunes for Data Centers and Battery Makers
Elice Group, a South Korean computing provider that suffered the worst first-day performance for a South Korean IPO on record on Tuesday—opening 16% below its offering price and plunging as much as 33%—surged roughly 30% in Seoul to hit its daily exchange limit.
Investors see Elice as a Korean version of CoreWeave, which shows the market has significant doubts about investing in AI through debt.
Huh Jae-Hwan, Eugene Investment & Securities via Biggo
Conversely, Australia’s NextDC plunged about 40% after cutting its financial outlook. The company cited delays to electricity-network upgrades at its Melbourne M3 data center that postponed contracted capacity and revenue. In Hong Kong, Contemporary Amperex Technology sank 8% to a 15-month low following weaker-than-expected third-quarter earnings driven by cooling Chinese auto sales and intensifying competition.
Rising Oil Prices Stoke Inflation Before Tech Earnings
Brent crude traded above $110 a barrel amid attacks near the Strait of Hormuz and U.S. data pointing to another domestic crude-stock draw. While earnings offered a reprieve for technology investors, rising oil prices stoked ongoing inflation concerns across global markets.
Meta Platforms and Tesla are scheduled to report later on Wednesday, with market participants monitoring financial updates for further evidence regarding capital expenditure returns on artificial intelligence infrastructure.