Asian stocks fell on August 28, 2024, as markets readied for the highly awaited Nvidia earnings report that could greatly dent tech stocks, especially those dealing in AI. Shares of Nvidia have seen a near 160% rise this year while demand for AI remains very strong. The company’s earnings are looked upon as a broader indicator for the Asia tech industry. Elsewhere, the South Korean KOSPI shed 0.5%, Japan’s Nikkei 225 fell 0.3% while Hong Kong’s Hang Seng index declined 0.8%.
Australian markets were under notable pressure, the ASX 200 falling 0.6%. This result came after the release of July’s Consumer Price Index data of a 3.5% rise was well in excess of expectations. The figure remains considerably above the RBA’s 2-3% target and fuels fears of persistent inflation forcing the hand of the nation’s central bank to continuing raising rates.
In the wider Asia, Chinese markets had a tough time: the Shanghai Shenzhen CSI 300 fell 0.7%, while the Shanghai Composite was down 0.3%. The announcement of Canadian tariffs on China’s electric vehicle industry added to poor investor sentiment, with fears of a revived trade war.
All in all, it was a cautious day of trading as market players continued to watch Nvidia’s earnings and inflation trends across key Asian economies.
FAQs
Why did Asian stocks fall on August 28, 2024?
Asian stocks were down as market caution pre-earned Nvidia and inflation fears in Australia after the jump in CPI.
How did the release of Australia’s inflation data affect the nation’s stock market?
The ASX 200 in Australia slipped 0.6% as July’s CPI came in at over 3.5%, and concerns grew that there would be more interest rate hikes by the RBA.
Which Asian indices fell most on the upcoming Nvidia earnings?
KOSPI of South Korea fell 0.5%, Nikkei 225 of Japan fell 0.3%, while the Hang Seng index in Hong Kong fell 0.8%.
How did the anticipation of Nvidia’s earnings impact tech stocks in Asia?
Tech stocks all over Asia were cautious because of the expectation of earnings by Nvidia, which will considerately affect the AI and technology sector.
What role did trade tensions between Canada and China play in the market movements?
Canadian tariffs against the Chinese electric vehicle industry were all that was required for the Chinese markets to move lower-a 0.7% decline in the CSI 300-and added to the overall bearish sentiment of the day.
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