HONG KONG: Asian markets diverged on Wednesday morning (Aug 27) following broad losses the previous day, as attention turns from political pressure on the US central bank to a key earnings report by AI giant Nvidia.
Tuesday’s declines in Tokyo, Hong Kong, Seoul and across the continent were followed by modest gains on Wall Street as investors tried to look past US President Donald Trump’s move to oust a Federal Reserve governor.
In Europe, shares fell and the Paris stock market tumbled over fears that France’s minority government could be toppled, after Prime Minister Bayrou proposed a confidence vote to break an impasse over his proposed budget cuts.
During Wednesday morning trading in Asia, the main benchmarks in Hong Kong, Sydney and Taipei were up narrowly.
Tokyo and Seoul were flat, while Shanghai and Bangkok were down.
California-based AI chip giant Nvidia will report second-quarter financial results on Wednesday evening, closely watched as a bellwether for the industry as worries about a tech bubble rise.
“The company has outgrown the tech sector and become the market’s lodestar,” wrote Stephen Innes of SPI Asset Management in a note.
“Analysts expect revenue to soar 53 per cent to US$46 billion, but this is about more than revenue beats,” he added.
“The crowd wants reassurance that the AI revolution isn’t just smoke and mirrors.”
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