---
title: "Asian stocks set to slide as Nvidia disappoints: markets wrap"
description: "Stocks in Asia slipped as Nvidia Corp. earnings lacked the wow factor to impress investors, while Chinese results helped extend a selloff in the country’s tech companies."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2024-08-29-asian-stocks-set-to-slide-as-nvidia-disappoints-markets-wrap/"
published: "2024-08-29T05:35:05"
updated: "2024-08-29T05:35:07"
lang: "en-ZA"
word_count: 477
---

# Asian stocks set to slide as Nvidia disappoints: markets wrap

> Stocks in Asia slipped as Nvidia Corp. earnings lacked the wow factor to impress investors, while Chinese results helped extend a selloff in the country’s tech companies.

By Bloomberg · Published 29 August 2024, 07:35 SAST · Updated 29 August 2024, 07:35 SAST

## Content

MSCI’s Asia-Pacific gauge declined 0.5%, dragged by chipmakers Taiwan Semiconductor Manufacturing Co. and SK Hynix Inc. Futures on the Nasdaq 100 Index were down 0.8% in Asia, as Nvidia slumped more than 8% in post-market trading following a sales forecast that missed the highest analyst estimates.

The outlook threatens to cool an AI frenzy that has powered global tech stocks for much of this year. Nvidia is a [key beneficiary](https://www.bloomberg.com/news/articles/2024-08-28/nvidia-sales-forecast-fails-to-meet-lofty-investor-expectations) of a race to upgrade data centres to handle AI software, and its sales forecasts have become a barometer for that spending boom. Chinese equity benchmarks fell as glum earnings underscored sluggish consumer demand in the world’s no. 2 economy.

“Nvidia had a good result yet share price was down on the back of big expectations for next year,” said Jun Bei Liu, a portfolio manager at Sydney-based Tribeca Investment Partners Pty Ltd. “It is expected to drag down performance of Asian AI stocks due to its close correlation, but its result actually demonstrated continued demand for the sector.”

Treasury 10-year yields steadied after rising one basis point to 3.84% in the previous session. The dollar edged lower after gaining broadly amid speculation investors were buying the US currency for portfolio rebalancing. The New Zealand dollar strengthened after the country’s business confidence [jumped to](https://www.bloomberg.com/news/articles/2024-08-29/new-zealand-business-confidence-hits-10-year-high-after-rate-cut) a 10-year high.

Chinese EV maker Li Auto Inc. was the biggest drag on the Hang Seng Tech Index, slumping nearly 15% on a forecast miss. Peer BYD Co. also fell despite delivering a 33% jump in profit. Meituan was an outlier, jumping after the delivery service provider beat estimates and unveiled a $1 billion buyback.

Adding to the sour mood, UBS Group AG [downgraded](https://www.bloomberg.com/news/articles/2024-08-28/ubs-lowers-china-growth-forecasts-on-deeper-property-downturn) its forecast for China’s growth for this year and the next, citing a deeper-than-expected property market slump.

Elsewhere, Nippon Steel Corp. [plans](https://www.bloomberg.com/news/articles/2024-08-28/nippon-steel-plans-additional-1-3-billion-spending-at-us-steel) to invest an additional $1.3-billion at plants operated by United States Steel Corp. as the Japanese company steps up efforts to secure union support for a takeover bid that’s been opposed by both President Joe Biden and presidential candidate Donald Trump.

#### Bar too high?

While Nvidia’s guidance underwhelmed, revenue more than doubled to $30-billion in the fiscal second quarter, which ended on 28 July. And the Santa Clara, California-based company’s board approved an additional $50 billion in stock buybacks.

Later Thursday, investors will shift focus to key US data including a growth reading, personal consumption and weekly jobless claims to help firm bets the Federal Reserve will quickly ease policy this year. Fed Bank of Atlanta President Raphael Bostic said it [“may be time to cut”](https://www.bloomberg.com/news/articles/2024-08-28/fed-s-bostic-wants-more-data-to-confirm-need-to-cut-next-month) but he’s still looking for additional data to support lowering interest rates next month.

In commodities, oil steadied after a two-day drop, with stock market losses offsetting a drawdown in US stockpiles and supply disruptions in Libya. Gold traded just below its record high, on course for a monthly gain.