Asian shares soar as Nvidia drives tech stocks higher

Japan's benchmark Nikkei 225 index rose by 2.4% during morning trading on Monday, January 6, 2025, reaching 40,248.68. This increase in Japan follows a broader trend of rising Asian shares, which gained momentum from a rally on Wall Street. Notably, Australia's S&P/ASX 200 saw a marginal increase of 0.3%, while South Korea's Kospi index added almost 1.0%. Conversely, Hong Kong's Hang Seng index experienced a slight decline of 0.3%, and the Shanghai Composite index remained stable with a minor decrease of less than 0.1%. Meanwhile, in the United States, U.S. Steel's shares surged by 8.1% overnight after announcing a legal challenge, along with Japan's Nippon Steel, against President Joe Biden's decision to block a major acquisition deal. The reaction in the stock market indicates traders' rising concerns about potential policy changes and economic directives from the incoming administration, especially as new employment reports are set to be released. Tech companies, particularly those involved in artificial-intelligence technology, drove gains in the U.S. market, with the S&P 500 recovering slightly from a series of losses. The Nasdaq composite gained substantially, spurred by Nvidia's impressive performance leading up to a major event, the CES convention, in Las Vegas. U.S. markets will observe a National Day of Mourning for the former President Jimmy Carter, affecting trading activities. Despite prevailing worries over inflation and tariffs, the economy has shown resilience as the Federal Reserve has begun to lower interest rates to combat inflationary pressures, which may invoke further strategic shifts among traders during this period of uncertainty.