Asian markets retreat amid Nvidia earnings

Asian stock markets declined on Wednesday due to concerns about China and in anticipation of Nvidia earnings. Technology-heavy indexes fell, and Australian stocks dropped on strong inflation data.

Regional markets were influenced by the mixed performance of Wall Street, where the Dow Jones Industrial Average and S&P 500 reached new highs, but the NASDAQ Composite lagged amid caution ahead of Nvidia’s earnings.

The expectation of rate cuts contributed to a shift away from technology towards more economically sensitive sectors. Technology-focused Asian bourses retreated, with chipmaking stocks showing particular volatility.

South Korea’s KOSPI dropped 0.5 per cent and Japan’s Nikkei 225 index fell 0.3 per cent, while Hong Kong’s Hang Seng index experienced a more significant drop by 0.8 per cent.

Australian stocks, led by the ASX 200, suffered losses following the release of inflation data for July. The headline CPI rose slightly above expectations, raising concerns about the Reserve Bank of Australia’s potential to raise interest rates.

Several major Chinese companies are scheduled to report earnings, including EV makers BYD and Li Auto. India’s Nifty 50 index is expected to open with muted gains, having recently surpassed the 25,000-point mark.

Attribution: Investing.com

Subediting: M. S. Salama