August 27, 2026, (Inside AI) — Asian equities climbed for a third straight session on Thursday after Nvidia's blowout earnings report reignited appetite for AI-linked hardware names, even as hotter U.S. inflation data kept bond markets on edge. The MSCI Asia-Pacific ex-Japan index rose 0.7%, with South Korea's KOSPI up 1.5% and Taiwan's benchmark up 0.9%. Japan's Nikkei 225 slipped 0.4%.
Nvidia said quarterly revenue more than doubled and guided third-quarter sales above Wall Street estimates. Its shares jumped 4.7% in after-hours trading, lifting S&P 500 e-mini futures 0.4%. The chipmaker's supply chain partners across Asia saw immediate buying interest.
"The business is in absolutely rude health," said Chris Weston, head of research at Pepperstone Group in Melbourne. "It's going to wake people up and think 'what have I missed?' It's a really bullish story and anyone supplying Nvidia through the supply chain will likely see the benefit today."
The rally came despite the Federal Reserve's preferred inflation gauge, the personal consumption expenditures index, rising 0.2% in July after a 0.1% decline a month earlier. Core PCE details were firmer than the headline suggested, according to analysts at Societe Generale.
"July core PCE inflation appeared broadly in line with expectations, but the details were firmer," the analysts wrote. "The inflation backdrop therefore looks somewhat firmer heading into the September FOMC meeting."
The yield on the U.S. 10-year Treasury note fell 1.5 basis points to 4.647% as traders positioned ahead of Fed Chair Kevin Warsh's speech in Jackson Hole on Friday. The dollar index held near 99.12, its strongest level in a week.
South Korea's central bank raised its policy rate by 25 basis points to 3%, matching a narrow consensus. The KOSPI pared early gains after the decision but stayed firmly positive. Taiwanese chip suppliers tracked Nvidia's after-hours move higher.
Supply Chain Ripple Effects
Nvidia's guidance matters beyond its own share price. The company's data center business drives orders for memory makers, packaging firms, and server assemblers concentrated in South Korea, Taiwan, and Japan. SK Hynix and Samsung Electronics supply high-bandwidth memory used in AI accelerators. TSMC fabricates Nvidia's most advanced chips.
Investors have treated Nvidia earnings as a proxy for AI infrastructure spending. Last quarter's results triggered a broad selloff in Asian tech when guidance underwhelmed. This quarter's beat reverses that dynamic.
Brent crude fell 0.7% to $87.20, on track for a fourth consecutive daily decline. Qatar's prime minister was expected in Tehran on Thursday to relaunch U.S.-Iran peace talks. Westpac analysts noted oil prices eased despite uncertainty around the Strait of Hormuz and renewed escalation threats from Russia.
Gold rose 0.7% to $4,624.14. Bitcoin added 0.8% to $79,043.18, while ether gained 1.3% to $2,504.96. All three assets are benefiting from revived "dollar debasement trades" after the U.S. Treasury intervened in bond markets last week.
Inflation Data Complicates Rate Path
The PCE report showed services inflation remains sticky even as goods prices moderate. That complicates the Fed's path toward easing. Markets still expect a rate cut in September, but the size of the cut is now less certain.
Warsh's Jackson Hole speech takes on added weight. His predecessor used the venue to signal major policy shifts. Traders will parse every sentence for clues on whether the Fed sees inflation risks as persistent or transitory.
For Asian markets, the combination of strong AI earnings and a firmer dollar creates a two-speed environment. Exporters benefit from global tech demand. Importers face currency pressure. Central banks like the Bank of Korea must balance growth concerns against imported inflation.
Nvidia's report also validated the broader AI trade. Companies building data centers, selling networking gear, and providing cloud capacity all stand to gain. The supply chain effect Weston described is already visible in early Asian trading.
