Asian equities slipped on Wednesday as weak corporate earnings in China raised fresh concerns over its flagging economy. Traders are also awaiting Nvidia Corp.’s results for cues on the growth momentum of artificial-intelligence related stocks.
Chinese stocks in Hong Kong fell as much as 1.5%, while those in the mainland declined to their lowest since early February. Bottled water maker Nongfu Spring Co. shares plunged as much as 13% after posting the slowest half-year profit growth in four years, becoming the latest company to issue disappointing results. Most major benchmarks across the region were in the red, with Japan and South Korea also seeing losses. Two-year Treasury yields, which are more sensitive to interest-rate policy, fell three basis points. Weak sentiment toward China reemerged following sluggish outlook guidance earlier this week from e-commerce firm PDD Holdings Inc. The drum beat of stuttering growth has continued through the commentary of other companies. ANTA Sports Products Ltd. on Tuesday also lowered its full-year sales guidance for one of its core brands amid expectations that it would need to hand out more discounts to woo buyers in the country. Meanwhile, Australia’s Fortescue Ltd. reported full-year profit that missed analyst forecasts, partly due to a slowdown in iron demand demand from biggest customer China. Cnooc Ltd., BYD Co. and Meituan are all set to report on Wednesday. Later in the US, investors will be looking for any clues on whether the artificial-intelligence euphoria has more room to run, with the world’s currently most influential stock, Nvidia, set to report earnings. A gauge of Australian monthly inflation cooled in July, suggesting price pressures began to ease in the current quarter though not fast enough to warrant early interest-rate cuts. The Australian dollar was steady against the greenback after rising as much as 0.3%. The yen extended losses to 0.4% against the dollar, following comments from Bank of Japan’s Deputy Governor Ryozo Himino. The BOJ will raise interest rates as long as inflation moves in line with the bank’s view, and it must monitor developments with “utmost vigilance,” Himino said. Seven & i Holdings Co. shares slipped after the operator of 7-Eleven stores sought a national security-related designation from authorities in a move that may raise potential hurdles for a takeover. Its application came after Alimentation Couche-Tard Inc. approached the company last week. Sony Group Corp. saw its shares climb as much as 2.7% after saying it will hike the price of its PlayStation 5 in Japan. “Ultimately what is more important are the economic fundamentals for Japan, which are improving,” David Chao, a global market strategist at Invesco Asset Management, said in a Bloomberg TV interview. “That certainly will be what will drive the Japanese market up in the second half of this year.” In other Asian corporate developments, HSBC Holdings Plc’s shares rose in Hong Kong to outperform the benchmark, after Bloomberg reported that Europe’s largest bank is considering plans that could remove layers of middle management. Shares of China’s top-selling automaker BYD fell as much as 3.1% in Hong Kong despite saying it expects overseas deliveries to account for almost half of total sales in the future. Warren Buffett’s Berkshire Hathaway Inc. sold an additional $982 million in Bank of America shares, according to a regulatory filing. In other markets, Bitcoin fell below the $60,000 level early Wednesday as part of a broad crypto market retreat that included a sharp drop in second-largest token Ether. Oil was steady after sliding in the previous session to end a three-day rally. Gold retreated after a three-day advance that’s taken it closer to its all-time high. Nvidia Earnings Investors are gearing up for big swings in Nvidia’s shares after the $3.2 trillion company reports. Trading in the options market implies a nearly 10% move in either direction on the day following the results. The stock has rallied about 160% this year and 1,000% from its October 2022 bear-market low. Analysts, on average, are predicting that the giant chipmaker will project revenue growth of more than 70% for the current quarter. Some are estimating an even larger surge. Nvidia’s results and forecast also will serve as a barometer for AI spending across much of the technology industry. US After Hours AMBA +18%, JWN +7.2%, SMTC +6.2%, BOX +5.1% higher on earnings; NCNO -10.2%, PVH -7.1% lower on earnings; SHAK -1.3% to close 9 stores; ELF +2.8% authorizes new $500 mln share repurchase program
Nikkei +0.07% Hang Seng -0.92% CSI -0.76% Shanghai -0.41% Shenzen -0.07%
Eur$ CNH CNY JPY GBP CHF RUB TRY WTI$ Gold BTC ETH
S&P -0.04% Nasdaq -0.16% EuroStoxx +0.10% FTSE +0.11% Dax +0.4% SMI
Macro :
- German Equities Lack Re-Rating Catalysts After 8% SAP-Led Boost
- Gold Set to Go Past $3,000 an Ounce If Fed Cuts Deep: Macro View
- Gold Set to Go Past $3,000 an Ounce If Fed Cuts Deep: Macro View
- Crypto Stocks Sink as Bitcoin Drops Amid Broader Selloff
- Celsius Creditors Explore Liquidation of New Bitcoin Mining Firm
Keep an eye on :
Keep an eye on :
- AGFB BB : Agfa-Gevaert 2Q Revenue Misses Estimates
- AGS BB : Ageas 1H Net Operating Profit Beats Estimates (1)
- AMBA US : Ambarella Jumps After 3Q Revenue Forecast Tops Estimates
- ALLN SW : Allreal 1H Net Income CHF60.5M Vs. CHF66.7M Y/y
- AT1 GY : Aroundtown Boosts FY FFO I Forecast
- AT1 GY : Aroundtown Boosts FY FFO I Forecast
- BAC US : Berkshire Sells $982 Million of Bank of America Shares
- BIOGB SS : Biogaia Offering by Holder EQT Prices at SEK117/Share
- BRBY LN : Burberry, EasyJet Indicated to Leave FTSE 100 Index
- CENER BB : Cenergy Offers Up to EU200 Million Shares: Terms
- CIFR US : Cipher Mining Buys New 300 MW Data Center Site in West Texas
- EKTAB SS : Elekta 1Q Operating Profit Misses Estimates
- BAT SS : Eurobattery Minerals, Boliden in Non-Binding Copper Offtake Pact
- XOM US : Exxon Seeks to Sell Conventional Permian Assets for $1 Billion
- GSK LN : GSK Jumps; Drugmaker Greets Delaware Supreme Court Review
- NORSE NO : Norse Atlantic Agrees in Principle Terms to Redeliver 3 787-8s
- NOVN SW : Novartis Leqvio V-Mono Phase III Study Met Primary Endpoints
- NOVOB DC : Lilly’s Move on Zepbound a ‘Modest Step Forward,’ Sanders Says
- PRU LN : Prudential 1H New Business Profit Meets Estimates
- OO6400 KS : Samsung SDI, GM Finalize Agreement for EV Battery Plant in US
- 3382 JP : Seven & I Shares Fall on Potential New Hurdle for Takeover Offer
- SHL GY : Siemens Healthineers Gets India Nod for Mpox Test Kit
- SAABB SS : Thai Air Force to Replace Old F-16s With Swedish Fighter Jets
- SAS SS : SAS Taps Former Novo Executive to Chair Airline After Chapter 11
- SOL SM : Soltec Says Executive Chairman Raul Morales Torres Resigned
- <sraIL SW : Stadler Rail 1H Ebit Misses Estimates
- SMCI US : Super Micro Falls as Hindenburg Takes Aim With Short Report (2)
- TTE FP : Total Unit Fined $48 Million for Attempted Market Manipulation
- TTE FP : Investigation of TotalEnergies CEO Closed After Three Years: AFP
- VAN BB : Van de Velde 1H Revenue EU113.3M Vs. EU120.6M Y/y
- VIG AV : VIG 1H Pretax Profit Beats Est., Sees FY at High End of Goal
- VKTX US : Viking Therapeutics Defended at Truist After Lilly-Related Drop
- WBA US : Walgreens Boots Trades Below $10 per Share, Sinks 60% YTD