Asian markets edge lower on Wednesday

Asian markets traded flat or slightly lower on Wednesday as investors held back ahead of chip giant Nvidia’s earnings, amid lingering concerns over lofty AI valuations. The tech-heavy Nasdaq fell 1.2 percent overnight, extending its decline to more than 6 percent below its record set in late October. S&P 500 and Nasdaq 100 futures slipped 0.2 per cent, while European futures were mostly flat.

Japan’s Nikkei, down around 7 per cent in November in US dollar terms, traded flat after giving up small gains. Mainland China indexes held steady, while Hong Kong shares fell 0.5 per cent.

Nvidia, a key driver of the AI stock rally, is expected to report a 56 per cent jump in revenue for its fiscal August-October quarter to $54.92 billion. Analysts warn the stock is priced for perfection, requiring continued strong GPU demand.

US bond yields remain firm amid fading expectations of a Federal Reserve rate cut, with the 10-year Treasury at 4.12 per cent. Japan’s long-term bond yields hit a 17-year high on concerns over government spending.

Bitcoin rebounded to $91,400 after a seven-month low, though still down 27 per cent from October’s peak. In FX markets, the yen slipped to 155.45 per dollar, while the euro held at $1.1580.

Attribution:Reuters