AI Rally Falters as Investors Shrug Off Nvidia Earnings – Asia Market Wrap
A recovery in global equities following the recent “AI scare trade” that unsettled Wall Street earlier in the week began to fade, as investors reacted cautiously to Nvidia’s earnings even though the figures exceeded expectations.
Futures tied to the tech-focused Nasdaq 100 slipped 0.3%, while contracts pointed to modest declines for European shares at the open. Nvidia pared most of its after-hours gains to trade just 0.2% higher. Meanwhile, the MSCI Asia Pacific Index climbed 0.9%, though semiconductor stocks in the region moved lower.
The chipmaker’s update hinted at unease about an overheated artificial-intelligence environment after US markets closed Wednesday. Nvidia shares are up 4.9% this year, outpacing advances in both the S&P 500 and Nasdaq 100.
In other areas of the market, the dollar fell for a second straight session. Gold advanced toward $5,200 an ounce as traders assessed Middle East tensions and the effects of US tariffs on global commerce. Bitcoin declined 1%, while Treasuries rose, pushing the 10-year yield down one basis point to 4.04%.
Japan’s currency strengthened 0.3% to 155.91 per dollar, accompanied by increases in shorter-term government bond yields. The yen led gains among Group-of-10 currencies after Bank of Japan board member Hajime Takata reiterated his support for additional rate hikes.
Separately, President Donald Trump is expected to sign an order in the coming days lifting a global tariff rate to 15% “where appropriate,” while aiming to maintain consistency with countries that have reached trade agreements, according to US Trade Representative Jamieson Greer.
