MSCI’s broadest index of Asia-Pacific shares outside Japan declined 0.3% as tech stocks dragged
Asian shares followed Wall Street futures lower on Thursday as Nvidia’s results disappointed some bullish investors, while the dollar stabilised and the Treasury yield curve came close to turning positive.
Europe is set for a mixed open, with EUROSTOXX 50 futures down 0.2% and FTSE futures 0.2% higher, ahead of the inflation data from Germany and Spain where any downside misses could add to the case of more policy easing in Europe.
U.S. weekly jobless claims, which have gained prominence given the Fed’s focus on the health of the labour market, are also due later in the day.
MSCI’s broadest index of Asia-Pacific shares outside Japan declined 0.3% as tech stocks dragged. The Nikkei dropped 0.2% while South Korea skidded 1%.
Nvidia’s third-quarter revenue forecast of $32.5 billion surpassed Wall Street estimates, but the results still failed to impress the most bullish investors, who have driven a strong rally in its shares.
Shares of the AI company plummeted nearly 7% in after-hour trading. As a result, Nasdaq futures tumbled 0.7%, while S&P futures declined 0.3%.
Nvidia’s chip contractor TSMC stumbled 1.8%, dragging the wider Taiwanese market 0.7% down.
Nvidia, in some ways, has become a victim of its success, its share price surging more than 180% this year and after beating earnings now in 14 of the past 15 quarters, according to Tony Sycamore, analyst at IG.
Whether today’s results signal the end of investors’ strong affinity for the chipmaker remains to be seen. However, at the very least, the post earnings reaction does suggest it is an excellent time to consider diversifying from Nvidia into other chipmakers, he added.
China’s blue chips were flat, having skidded for three consecutive sessions as disappointing results from Chinese companies highlighted the country’s weak economic recovery. UBS on Wednesday cut its 2024 GDP growth forecast for China to 4.6% from 4.9%.
