Asian equities saw modest gains on Thursday as investors navigated mixed signals from the latest tariff announcements by US President Donald Trump and disappointing earnings from Nvidia Corp..
Stocks in Australia, Hong Kong, and Japan saw upticks, while South Korea posted losses. Chinese shares fluctuated in early trading, and a regional equity gauge managed to rise for a second consecutive day.
Futures for the S&P 500 and Nasdaq 100 remained steady after modest gains on Wednesday. However, Nvidia’s post-market performance weighed on sentiment. Shares of the chipmaker fell after it reported solid but not exceptional quarterly results, disappointing investors who had grown accustomed to exceptional earnings reports from the company.
Nvidia reported $11 billion in revenue from its Blackwell chips in the fourth quarter, marking what it called the “fastest product ramp” in its history. The company’s forecast for the next quarter was optimistic, but concerns about slowing AI spending and whether data center operators will continue to invest heavily kept investors cautious.
Meanwhile, President Trump’s latest tariff announcements continued to ripple through the markets. On Wednesday, he announced a 25% tariff on European Union imports and confirmed that levies on Mexico and Canada would take effect on April 2. However, his statements were sometimes contradictory, adding to investor confusion and uncertainty.
The latest tariff developments boosted the US dollar, helping to stem the slide in the Canadian dollar and Mexican peso, which had been under pressure due to the tariff news. The confusion around the timing and scope of the tariffs kept investors on edge, with some speculating whether these actions represent the start of more aggressive trade policies or whether the administration will back down.
The uncertainty over tariffs also kept investor sentiment weak, extending pressure on equities and cryptocurrencies. Meanwhile, US Treasury yields slipped after Wednesday’s rally, with the 10-year yield falling to its lowest level since mid-December. The US dollar index held onto its gains from the previous day.
In commodities, Bitcoin tumbled to around $84,000, more than 20% below its peak from last month, driven by outflows from exchange-traded funds. Oil prices also saw a dip, while gold remained largely unchanged.
In Asia, the yen traded around 149 per dollar after remaining relatively stable on Wednesday. Japan’s top currency official indicated that he had no objections to market expectations of potential interest rate hikes by the Bank of Japan, which helped send the yen to a four-month high earlier this week.
Looking ahead, the Group-of-20 finance ministers and central bank governors will meet in Cape Town, while key data on consumer confidence in the Eurozone and US GDP and initial jobless claims are set to be released later Thursday.
Nvidia’s Earnings: Solid, But Not Exceptional
Initially, a $330 billion exchange-traded fund tracking the Nasdaq 100 saw a modest rise after Nvidia’s earnings report, as investors hoped the company’s strong guidance would help reignite the AI-driven rally. Despite this, Nvidia’s results and forecast raised some concerns about the future of the AI industry, particularly whether data center operators will continue their aggressive spending on computing power.
“Nvidia has successfully dispelled concerns about production delays with its Blackwell chips and maintained a strong performance across the board in the fourth quarter,” said Derren Nathan, an analyst at Hargreaves Lansdown. “However, the outlook remains uncertain as investors weigh the potential slowdown in demand for AI infrastructure.”
Related topics:
Options Traders Brace for Volatility Ahead of Nvidia Earnings and Market Catalysts
PBOC’s Policy Uncertainty Sparks Market Confusion Over Timing of Rate Cuts
Asian Markets Take a Cautious Approach Amid Economic Concerns and Global Developments
