Asian markets experienced mixed performances on Wednesday, following US losses, as investors eagerly awaited a key tech earnings report and minutes from the Fed policy meeting later in the day.
The Nasdaq, a tech-heavy index, dropped nearly one percent in US trading on Tuesday ahead of chip giant Nvidia’s highly anticipated results. Analysts consider Nvidia’s performance a significant macroeconomic indicator and a key signal for the artificial intelligence (AI) sector’s health.
Despite a 4 percent decline in Nvidia’s shares on Tuesday, the stock remains significantly higher since the year’s beginning, reflecting the market’s enthusiasm for AI-related companies.
US and European equities, buoyed by expectations of interest rate cuts and strong tech earnings, particularly in AI, have consistently set record highs in recent months.
Analysts are closely monitoring Nvidia’s results, considering its growing influence on the bullish stock narrative, key tech companies, and broader indexes.
In Hong Kong and mainland China, shares initially opened lower in response to Wall Street losses but rebounded about an hour later, with the Hang Seng Index rising approximately 1.8 percent.
The positive movement followed China’s central bank’s announcement of a significant reduction in the five-year loan prime rate used to price mortgages, from 4.2 to 3.95 percent.
However, some analysts remain cautious, waiting for more substantial measures from Beijing to support China’s economy and its struggling property sector.
Sydney, Seoul, Taipei, Bangkok, Manila, Jakarta, and Kuala Lumpur recorded losses, while Japanese stocks were also lower, influenced by Nvidia’s slump.
Despite recent losses in Tokyo, hedge funds are reportedly optimistic about Japan this year, anticipating a shift in the central bank’s policy of nearly a decade-long negative rates.