SYDNEY- Asian shares followed Wall Street futures lower on Thursday as Nvidia’s results disappointed some bullish investors, while the dollar steadied and the Treasury yield curve came within a whisker of turning positive.
Europe is set for a mixed open, with EUROSTOXX 50 futures off 0.2 percent and FTSE futures up 0.2 percent , ahead of the inflation data from Germany and Spain where any downside misses could add to the case of more policy easing in Europe.
US weekly jobless claims, which have gained prominence given the Federal Reserve’s focus on the health of the labor market, are also due later in the day.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.3 percent as tech stocks dragged. The Nikkei eased 0.2 percent while South Korea dropped 1 percent .
Nvidia’s third-quarter revenue forecast of $32.5 billion surpassed Wall Street estimates, but the results still failed to impress the most bullish investors, who have driven a dizzying rally in its shares.
Shares of the AI darling slumped almost 7 percent in after-hour trading. As a result, Nasdaq futures dropped 0.7 percent , while S&P futures skidded 0.3 percent .
Nvidia’s chip contractor TSMC slid 1.8 percent , dragging the broader Taiwanese market 0.7 percent down.
“Nvidia, in some ways, has become a victim of its success, its share price soaring over 180 percent this year and after beating earnings now in 14 of the past 15 quarters,” said Tony Sycamore, analyst at IG.
“Whether today’s results signal the end of investors’ strong affinity for the chipmaker remains to be seen. However, at the very least, the post earnings reaction does suggest it’s an excellent time to consider diversifying from Nvidia into other chipmakers.”
China’s blue chips were flat, having dropped for three straight sessions as disappointing results from Chinese companies highlighted the country’s frail economic recovery. UBS on Wednesday cut its 2024 GDP growth forecast for China to 4.6 percent from 4.9 percent .
Chinese battery maker CATL fell 1.1 percent after two top Republican lawmakers sought to have the firm to be added to a restricted list of companies allegedly working with Beijing’s military.
