Asian shares experienced a decline on Thursday as investors turned their attention to the upcoming data on the U.S. economy following Nvidia's financial report. Nvidia, a prominent player in the artificial intelligence sector, announced its earnings on Wednesday, revealing a robust profit. Despite the positive financial results, Nvidia's stock saw a 2.1% drop, although it has surged by 153% over the year. With a market value exceeding $3 trillion, Nvidia holds significant influence on Wall Street.
Major Asian indices reflected the cautious sentiment, with Japan's Nikkei 225 slipping by 0.4%, Australia's S&P/ASX 200 declining by 0.4%, South Korea's Kospi dipping by 0.8%, Hong Kong's Hang Seng falling by 0.5%, and the Shanghai Composite dropping by 0.5%.
Despite the White House's announcement of plans for a future phone call between Chinese President Xi Jinping and U.S. President Joe Biden, concerns persist regarding tensions surrounding Taiwan. Investors are eagerly awaiting the release of the U.S. government's latest inflation data on Friday, particularly the PCE report for July, which is expected to show a slight increase in inflation to 2.6%.
Wall Street experienced a mixed session, with the S&P 500 declining by 0.6%, the Dow Jones Industrial Average falling by 0.4%, and the Nasdaq composite closing 1.1% lower. Notable technology companies like Nvidia, Apple, Microsoft, and Amazon contributed to the downward pressure on the market.
In the bond market, Treasury yields displayed a mixed performance, with the 10-year Treasury yield edging up slightly. Energy trading saw benchmark U.S. crude and Brent crude prices rising marginally. Currency trading witnessed the U.S. dollar strengthening against the Japanese yen and the euro.
