Asian Stocks Retreat Amidst Uncertainty
Investor Sentiment Wavers Ahead of Key Cues
Most Asian stocks retreated on Wednesday, following Wall Street’s overnight weakness as risk sentiment wavered ahead of more cues from the Federal Reserve and key earnings from artificial intelligence giant NVIDIA Corporation (NASDAQ:).
Chinese Markets See Extended Gains
Chinese markets saw extended gains as they recovered further from five-year lows. A bigger-than-expected interest rate cut by the People’s Bank of China on Tuesday also appeared to be lending some support.
Wall Street Indexes Closed Lower
Wall Street indexes closed lower on Tuesday, while futures fell in Asian trade on Wednesday as some uncertainty ahead of chipmaker Nvidia’s quarterly earnings triggered a heavy dose of profit-taking in the technology sector.
Asian Markets React to Losses
Asian markets reacted as futures for the lost nearly 0.3% and the fell 0.1%. Focus was also on the , which are expected to provide more insight into the bank’s plans for interest rates.
Japan’s Nikkei Index Falls
In Asia, Japan’s index fell 0.4%, extending losses into a third straight session after the index surged to 34-year highs earlier this month. Technology stocks were the biggest decliners, with chipmakers and chip-related stocks falling in line with overnight losses in Nvidia.
Japan’s Economic Data Reveals Surprises
Data showed Japanese grew much more than expected in January, while shrank more than expected.
Australian Market Slides Amidst Profit-Taking
Australia’s slid 0.8%, also seeing heavy profit-taking after notching record highs earlier in 2024. Heavyweight mining stocks, particularly BHP Group Ltd (ASX:), were the biggest weights on the index, tracking a decline in commodity prices.
National Australia Bank Sees Positive Movement
On the other hand, National Australia Bank (ASX:) rose 1.1% to a 6-½ year high on a stronger quarterly profit.
India’s Futures Point to a Flat Open
Futures for India’s index pointed to a flat open.
Chinese Stocks Rise Amid Positive Travel Figures
China’s bluechip index rose 0.8%, while the added 0.9%, with both indexes pulling further away from five year lows. Sentiment towards China was boosted by official data showing a large increase in travel demand and spending through the Lunar New Year holiday, which raised hopes for a broader recovery in spending.
Tech Sector Skittish Before Nvidia Earnings
Most major Asian technology stocks tracked overnight losses in their U.S. peers, with investors turning largely cautious towards the sector in anticipation of fourth-quarter earnings from Nvidia Corp. Markets were waiting to see whether Nvidia could deliver on forecasts of a massive spike in revenue and earnings, which in turn are likely to factor into optimism over an AI-driven boom in tech.
South Korea’s fell 0.3% on losses in heavyweight tech stocks, while Nvidia suppliers Advantest Corp. (TYO:) and TSMC (TW:) (NYSE:) fell 3.3% and 0.9%, respectively.
