©Reuters.
Investing.com — Risk sentiment wavered in most Asian stocks on Wednesday ahead of further cues from the US Federal Reserve and important earnings from artificial intelligence giant Nvidia Corporation (NASDAQ:). The decline followed an overnight slump on Wall Street.
However, the Chinese market further recovered from its five-year low and the rate of increase expanded. The People's Bank of China's sharper-than-expected interest rate cut on Tuesday also appears to be providing some support.
Wall Street indexes closed lower on Tuesday, while futures fell in Asian trading on Wednesday as uncertainty ahead of chipmaker Nvidia's quarterly results led to profit-taking in the technology sector. .
It fell 0.1%, down nearly 0.3%. 0.1% reduction. , which is expected to provide further insight into the bank's interest rate plans, also attracted attention.
In Asia, Japan's index fell 0.4% after rising to a 34-year high earlier this month, widening its decline for the third straight session. Technology stocks fell the most, with semiconductor manufacturers and chip stocks falling in line with Nvidia's overnight loss.
Data showed that the Japanese economy grew much faster than expected in January, but contracted more than expected.
Australia fell 0.8%, with profit-taking evident after hitting a new record high in early 2024. In particular, large mining stocks such as BHP Group (ASX:) accounted for the largest weight in the index and followed the decline in commodity prices.
Meanwhile, National Australia Bank (ASX:) rose 1.1% to a six-and-a-half year high after higher quarterly profits.
Indian index futures showed flat development.
Chinese stocks rise as strong tourist numbers support sentiment
China's blue-chip index rose 0.8% and then another 0.9%, with both indexes further away from their five-year lows.
Official figures showing a significant increase in travel demand and spending during the Lunar New Year holiday boosted sentiment toward China and raised hopes for a further rebound in spending.
Hong Kong's index soared 1.9% as mainland stocks rose. The better-than-expected performance of the People's Bank of China on Tuesday also strengthened sentiment towards the Chinese market.
Technology sulks ahead of Nvidia's earnings call
Most of Asia's major technology stocks tracked overnight losses in their U.S. peers, with investors largely cautious about the sector in anticipation of fourth-quarter gains. Nvidia Inc. .
The market will be watching to see if Nvidia can meet expectations for a significant jump in sales and earnings, which will likely factor in optimism about the AI-driven technology boom.
South Korea fell 0.3% as leading tech stocks fell, while Nvidia's suppliers fell Advantest Co., Ltd. (TYO:) and TSMC (TW:) (NYSE:) fell 3.3% and 0.9%, respectively.
