Asian Stocks Slip After Nvidia’s Revenue Forecast Fails To Cheer Investors
Nvidia said that its fiscal fourth-quarter sales will be about $37.5 billion against the highest estimate of $41 billion
Most stocks in the Asia Pacific region fell on Thursday after the technology giant Nvidia Inc.'s revenue forecast fell short of the highest estimates. Stocks also weighed amid rising geopolitical tensions.
Equity benchmarks in Japan and South Korea declined during the session opening while the futures contracts for the tech-heavy Nasdaq 100 dropped. The Nikkei was 177 points, or 0.47%, lower at 38,180, while the S&P ASX 200 was up 19 points, or 0.23%, at 8,344 as of 5:40 a.m.
Stocks in Asia will face pressure as the Ukraine-Russia war escalates with the former launching British cruise missiles at military targets inside Russia, a day after firing US US-made Army Tactical Missile Systems.
This follows the decision by President Joe Biden’s administration to approve Kyiv’s limited use of the weapons and President Vladimir Putin's signing a decree allowing Russia to fire nuclear weapons.
Meanwhile, the artificial intelligence giant said that its fiscal fourth-quarter sales will be about $37.5 billion against the highest estimate of $41 billion, according to Bloomberg News. The scrip fell about 2% in extended trading hours.
Nvidia’s revenue rose 94% to $35.1 billion in the fiscal third quarter with the data centre unit, the biggest division, seeing its revenue double from a year earlier to $30.8 billion.
The benchmark stock gauges on Wall Street closed mixed on Wednesday. The tech-heavy Nasdaq 100 ended lower, with the futures pointing to a negative start on Thursday weighed by heavyweight Nvidia.
The S&P 500 index closed flat, while the Nasdaq Composite slipped by 0.11%. The Dow Jones Industrial Average rose 0.32%.
Traders in Asia will monitor South Korea's export data, Indonesia's current account balance, and Hong Kong's inflation print.
On the commodity front, crude oil prices fell on Thursday while traders watch for further esclation of the war in Ukraine. Brent crude trading 0.68% lower at $72.81 a barrel as of 6:00 a.m. IST, and the West Texas Intermediate down 0.75% at $68.87.
