Asian shares fall as Nvidia results fail to impress

Asian shares fell in early Thursday trading, reflecting subdued sentiment on Wall Street that was boosted by Nvidia Corp’s weak earnings forecast. Bitcoin set a new record.

Stocks in Japan and South Korea fell along with Hong Kong stock futures. Contracts for U.S. benchmarks fell on Thursday in Asian trade after falling on Nvidia earnings. The chip giant met third-quarter revenue and profit expectations, but fell short of the highest estimates for future earnings. Shares in Australia were slightly higher.

Treasuries were steady on Thursday after yields rose above the curve in the previous session, partly reflecting tepid demand in a 20-year auction of US Treasuries. An index of the dollar edged lower after rising on Wednesday amid geopolitical tensions. Ukraine used British cruise missiles against Russian targets for the first time during the conflict.

The tepid response to Nvidia’s earnings could spill over into global markets, given the size of the world’s largest company by market capitalization and its role in the artificial intelligence boom. Shares in South Korea’s SK Hynix, a supplier of Nvidia, rose as much as 0.9% in Seoul.

“I have a feeling we’ve peaked Nvidia,” Amy Xie Patrick, head of revenue strategy for Pendal Group, said on Bloomberg Television. “This is a stock that beat analysts’ estimates but didn’t beat enough.”

Meanwhile, investors in Asia will try to gauge the impact of a US indictment against Gautam Adani, one of India’s richest men, and other executives over the alleged payment of more than $250 million in bribes. The investigation looked into whether improper payments were made to officials in India for favorable treatment on an energy project.

Data to be released in Asia include the current account for Indonesia and inflation in Hong Kong. Turkey will make an interest rate decision.

Elsewhere, the head of Japan’s biggest union is calling on Prime Minister Shigeru Ishiba’s government to step up efforts to raise wages.

Bitcoin set another all-time high, supported by a series of developments that highlight the deepening embrace of the digital asset industry in the United States under crypto cheerleader Trump. The world’s largest cryptocurrency is fast approaching $100,000, with the help of MicroStrategy Inc.’s massive buying.

More cuts

Federal Reserve Bank of Boston President Susan Collins said more rate cuts are needed, but policymakers should tread carefully to avoid going too fast or too slow. The pricing of the swaps indicated a less than 50% chance that the Fed will cut rates again in December.

Traders are also monitoring President-elect Donald Trump’s administration picks, particularly his pick for the Treasury secretary role. Former Federal Reserve Governor Kevin Warsh and Apollo Global Management’s Marc Rowan are contenders, according to people familiar with the matter. Meanwhile, Trump tapped Cantor Fitzgerald LP managing director Howard Lutnick to lead the Commerce Department, a key role in facilitating his tariff and trade policies.

“When I look at the Treasury race, I want to see exactly who has that role because the tax policy, the debt limit is coming back,” Ed Mills, Washington policy analyst at Raymond James, told Bloomberg Television. “We need to see exactly how that person has a relationship with the Federal Reserve, because monetary policy will quickly figure into all of this.”

Gold rose early on Thursday, posting its fourth daily advance. Oil prices also rose after pulling back on Wednesday.