Asian equities declined in early Thursday trading, reflecting a muted mood on Wall Street that was amplified by Nvidia Corp.’s lacklustre revenue forecast. Bitcoin set a fresh record.
Shares in Japan and South Korea fell alongside Hong Kong equity futures. Contracts for US benchmarks declined Thursday in Asian trading after falling on Nvidia earnings. The chip giant met third-quarter revenue and earnings expectations but failed to meet the highest estimates for future revenue. Shares in Australia were slightly higher.
Treasuries were steady Thursday after yields rose across the curve in the prior session, partly reflecting lukewarm demand in a 20-year US government debt auction. An index of the dollar edged down after gaining Wednesday amid geopolitical tensions. Ukraine used British cruise missiles against Russian targets for the first time during the conflict.
The tepid response to Nvidia’s earnings may ripple across global markets, given the size of the world’s largest company by market value and its role in the artificial intelligence boom. Shares of South Korea’s SK Hynix, which is a supplier of Nvidia, rose as much as 0.9% in Seoul.
“I have a feeling we’ve reached peak Nvidia,” Amy Xie Patrick, head of income strategies for Pendal Group, said on Bloomberg Television. “This is a stock that beat analyst estimates but didn’t beat enough.”
Meanwhile, investors in Asia will be looking to gauge the effect of a US indictment of Gautam Adani, one of India’s richest people, and other executives over the alleged payment of more than $250 million in bribes. The probe looked into whether there were improper payments made to officials in India for favourable treatment on an energy project.
The data set for release in Asia includes the current account balance for Indonesia and inflation in Hong Kong. Turkey will deliver an interest rate decision.
Elsewhere, Japan’s largest labour union chief calls for Prime Minister Shigeru Ishiba’s government to accelerate efforts to boost wages.
Bitcoin set another all-time high, supported by a series of developments highlighting the deepening embrace of the digital asset industry in the US under crypto cheerleader Trump. The world’s largest cryptocurrency is fast approaching $100,000, helped along by MicroStrategy Inc.’s massive purchases.
More Cuts
Federal Reserve Bank of Boston President Susan Collins said more interest-rate cuts are needed, but policymakers should proceed carefully to avoid moving too quickly or too slowly. Swaps market pricing indicated a less than 50% chance the Fed will cut rates again in December.
Traders are also monitoring President-elect Donald Trump’s administration picks, especially his selection for the Treasury secretary role. Former Federal Reserve Governor Kevin Warsh and Apollo Global Management’s Marc Rowan are contenders, according to people familiar with the matter. Meanwhile, Trump tapped Cantor Fitzgerald LP Chief Executive Officer Howard Lutnick to lead the Commerce Department, a key role in facilitating his tariff and trade policies.
“As I look at the Treasury secretary race, I want to see exactly who is in that role because the tax policies, the debt limit all come back,” Ed Mills, Washington policy analyst at Raymond James, told Bloomberg Television. “We need to see exactly how that person has a relationship with the Federal Reserve because monetary policy will quickly figure into all of this.”
Gold was up early Thursday, notching its fourth daily advance. Oil prices also climbed after retreating Wednesday.
Source: https://www.cnbctv18.com/market/asian-stocks-dip-as-nvidia-results-fail-to-impress-19512254.htm
