SEOUL, South Korea – In a positive turn of events for the tech industry, Samsung Electronics saw a significant increase in its shares by more than 5% following news that chip giant Nvidia is considering the South Korean chipmaker’s high bandwidth memory chips for use in its graphics processing units. Meanwhile, rival SK Hynix faced a decline in its shares by over 3% after announcing the delivery of its high-bandwidth memory chips to customers, with Nvidia reported to be its first client.
China’s central bank made headlines by keeping its one- and five-year loan prime rates steady at 3.45% and 3.95%, respectively. The one-year LPR acts as the benchmark for most household and corporate loans, while the five-year LPR is crucial for property mortgages. Additionally, reports emerged that the PBOC has reshuffled its monetary policy committee, adding securities regulator head Wu Qing and vice central bank chief Xuan Changneng to its team.
The Japanese yen hit a four-month low against the US dollar, reaching 151.3, after the Bank of Japan made a groundbreaking policy shift by raising interest rates from -0.1% to around 0%-0.1% and abandoning its yield curve control policy. This drop marks the yen’s weakest point compared to the US dollar since June 1990.
Chipotle Mexican Grill saw a surge in its shares following a 50-for-1 stock split, indicating positive market sentiment towards the popular fast-casual restaurant chain. Meanwhile, RBC Capital Markets warned of potential volatility in trading over the coming months, projecting sideways movements in the S&P 500 and Nasdaq Composite leading up to the second quarter of the year.
As investors navigate through a rapidly changing market landscape, these developments highlight the dynamic nature of the global economy and the intricacies of the financial sector. With various factors influencing stock performance and market trends, staying informed and adaptable is crucial for making sound investment decisions in an ever-evolving market environment.