Asian Stock Markets Slide as NVIDIA Faces China Setback and Meituan Shares Crash

Thursday was a mixed day on Asian stock markets as investors reacted to lackluster signals from U.S. chipmaker Nvidia. The MSCI Asia-Pacific index, excluding Japan, fell 0.4%. Wall Street futures were also in the red, with Nasdaq futures down 0.3% after Nvidia shares fell 3.1% in the late session.

Japan’s Nikkei index climbed by 0.7%, supported by strength in trading houses like Mitsubishi Corp. South Korea’s Kospi added 0.4% after the Bank of Korea held interest rates. But the Hang Seng in Hong Kong dropped 0.9 percent, as the food delivery giant Meituan plummeted more than 11 percent after a dismal earnings report.

NVIDIA Sparks Tech Jitters

Investors were particularly interested in NVIDIA‘s outlook and its China business, which has been under pressure due to U.S. trade bans. Nvidia reported data center revenues of $41.1 billion, slightly below expectations. This pulled down suppliers in Taiwan and South Korea. Taiwan Semiconductor Manufacturing Company dropped 2.5%, and Samsung Electronics was down 1%.

In contrast, Chinese chipmakers soared. Semiconductor Manufacturing International Corp. (SMIC) rose 9.3%, and artificial intelligence chipmaker Cambricon was up over 8%. The rally pushed up China’s STAR 50 index by 5%, a sign that capital is flowing into domestic players while U.S. companies face greater obstacles in China.

Currency and Bond Moves

The U.S. dollar weakened as traders grew more confident about a September interest rate cut by the Federal Reserve. Markets now expect an 89 percent chance of a 25-basis-point cut, more than a month ago. The dollar was 0.2 percent weaker at 147.13 yen. The euro was flat at $1.1642.

Bond markets were also active. Yields on the 10-year U.S. Treasury note fell to 4.22%, from the level of the previous day. Recent comments from Fed Chair Jerome Powell, suggesting a softer stance on inflation, added to expectations of easier monetary policy. Political pressure from President Trump has also influenced market sentiment.

Commodities Under Pressure

Concerns about slowing global demand pushed oil prices down. Brent crude declined 0.8% to $67.49 a barrel, and U.S. crude dropped to $63.78. Gold prices also fell, with spot gold 0.2% lower at $3,391.60 an ounce. Investors are on edge, trying to reconcile hopes that U.S. interest rates will be lowered with fears of a slowdown in economic growth across the world.