Tokyo, Japan – Asian markets experienced a decline as tech giants in the United States pulled down stocks. The focus shifted from the Federal Reserve’s policy outlook to Nvidia Corp.’s upcoming earnings report. As Hong Kong and mainland Chinese markets opened lower, South Korean and Australian equities also displayed weakness. US futures slipped during Asian trading as major tech companies influenced declines on Wall Street.
The semiconductor company Nvidia is set to release its earnings later in the week, with analysts anticipating another strong performance that could lead to an increase in profit guidance. This report could offer valuable insight into the demand for artificial intelligence, as Nvidia stands to benefit from the significant investment by companies in AI infrastructure.
Chinese consumers came into focus following a plunge in PDD Holdings Inc.’s shares in New York. This drop was exacerbated by a warning of sluggish sales from the owner of Temu. Additionally, concerns arose from disappointing revenue reports from major Chinese consumer companies.
The second-largest economy, China, showed positive signs in its manufacturing sector, with industrial profits at major Chinese companies growing by 4.1% year-on-year in July. Meanwhile, the Chinese government urged Canada to address new tariffs against China promptly.
In the corporate world, LG Electronics Inc. is contemplating an IPO for its India business to reach a revenue target of $75 billion in electronics by 2030. BHP Group Ltd., the world’s largest miner, reported a 2% increase in full-year profit, in line with analyst expectations.
In the commodities market, oil prices dropped after Libya’s eastern government announced a halt in exports, while gold prices also slid. Looking ahead, market participants are closely monitoring US inflation figures and consumer spending data to gauge the health of the economy and potential rate cuts by the Federal Reserve.
As investors anticipate Nvidia’s earnings report and key data releases throughout the week, market movements continue to be influenced by a combination of corporate earnings, economic indicators, and geopolitical developments. The outcome of these events will likely shape market sentiment and drive trading activity in the days ahead.