Asia report: Markets mostly lower with Nvidia, Adani in focus

Asia-Pacific markets broadly declined on Thursday as investors digested mixed signals from Nvidia’s earnings and regional developments.

Despite Nvidia’s impressive 94% year-on-year revenue growth to $35.08 billion for the third quarter, the slower pace compared to previous quarters and a less robust earnings forecast weighed on sentiment.

Nvidia's stock slid 2.5% in extended trading, pressuring semiconductor-related stocks in Asia.

“Markets continue to express caution, with participants reluctant to take on significant risk. Asian markets are trading with a mix of gains and losses on Thursday, mirroring the mixed performance on Wall Street overnight,” said TickMill’s Patrick Munnelly.

“Traders are also keeping a close eye on the growing tensions between Russia and Ukraine, with wires reporting that Russia launched an intercontinental ballistic missile attack against Ukraine, targeting the city of Dnipro, early Thursday.

“The cautious market sentiment has also been influenced by the People's Bank of China's decision to maintain interest rates at their current level and the uncertainty surrounding the US Federal Reserve's future interest rate moves.”

Munnelly added that investors were also cautious due to the possibility of slower sales growth at AI powerhouse Nvidia.

“As investors process Nvidia's forecast of its slowest sales increase in seven quarters, the figures disappointed investors used to the AI darling surpassing all projections.

“Given Nvidia's pivotal role in the AI environment, which has fuelled the majority of the market gains in recent months, the forecast is expected to have an impact on suppliers as well as the larger markets. “

Markets mixed but mostly lower after Nvidia results

In Japan, the Nikkei 225 dropped 0.85% to 38,026.17, with notable losses for IHI Corporation, Sumitomo Realty & Development, and East Japan Railway Company, which fell between 3.27% and 3.94%.

The broader Topix index also shed 0.57% to 2,682.81.

Chinese markets displayed mixed results - the Shanghai Composite edged up 0.07% to 3,370.40, while the Shenzhen Component slipped 0.07% to 10,819.88.

Major decliners included DLG Exhibitions & Events, Shanghai Jiao Yun Group, and Nancal Energy-Saving Technology, all losing over 9%.

Hong Kong’s Hang Seng Index fell 0.53% to 19,601.11, with pressure from declines in Chow Tai Fook Jewellery Group, Sinopharm Group, and WuXi AppTec.

In South Korea, however, the Kospi 100 rose 0.49% to 2,493.77, buoyed by gains in SK Innovation, Hyundai Heavy Industries, and Posco, all advancing more than 3%.

Australia’s S&P/ASX 200 was nearly flat, dipping 0.04% to 8,323.00.

Shares of GQG Partners plunged 19.32% after its association with Adani Enterprises sparked a sell-off following fraud charges against Gautam Adani in the US.

The chair of Adani Group, alongside seven other defendants, were accused of paying more than $250m in bribes to government officials in India over up to $2bn in solar energy contracts.

GQG Partners is Adani’s fourth largest shareholder, with LSEG reporting that it owns around 3.94% of the company.

Across the Tasman Sea, New Zealand's S&P/NZX 50 climbed 0.22% to 12,765.24, led by Pacific Edge’s 7.58% surge.

Dollar mixed against major regional currencies, oil prices rise

In currency markets, the dollar was last down 0.8% on the yen, trading at JPY 154.20, as it slipped 0.04% against the Aussie to AUD 1.5365.

The greenback was, however, stronger on the Kiwi, advancing 0.24% to change hands at NZD 1.7057.

Oil prices rose, with Brent crude futures last up 1% on ICE to $73.54 per barrel, and the NYMEX quote for West Texas Intermediate gaining 1.11% to $69.51.

Reporting by Josh White for Sharecast.com.