Asian stocks were mostly in the red on Wednesday, with indexes largely tracking tech firms trading lower ahead of US chip giant Nvidia Corp.’s earnings release later in the day, while Australian shares fell as consumer inflation down under further strengthened.
Tech-heavy indexes, including South Korea’s KOSPI, dropped 0.30%, Japan’s Nikkei 225 lost 0.04%, and Hong Kong’s Hang Seng index declined 0.94%.
Semiconductor stocks were cautious in anticipation of Nvidia’s second-quarter earnings, which is expected to determine whether the robust demand for artificial intelligence (AI) technologies continued to aid the company’s growth.
As a frontrunner in the AI race, any key points from the Santa Clara, California-based chipmaker’s earnings might be considered for Asian tech shares.
Stocks of Taiwanese contract chip developer Taiwan Semiconductor Manufacturing Co. (TSMC) Ltd. and Japanese chip testing equipment maker Advantest Corp., which both count Nvidia as a client, climbed by 1.80% and 4.07%, respectively.
The AI darling’s main supplier, South Korea’s SK Hynix Inc., gained 1.60%. Its Chinese rival, Semiconductor Manufacturing International Corp. (SMIC), was flat at HK$16.40.
Australia Stocks Falter as CPI Keeps RBA Rate Hike Prospects
Australian stocks stumbled on Wednesday, logging their weakest performance in Asia after the country’s monthly consumer price index (CPI) surged in July.
The S&P/ASX 200 was down 0.31%, having fallen 0.60% earlier in the session. Australia’s headline CPI increased to 3.5% year-over-year (YoY) in the month earlier, surpassing forecasts of 3.4% but ending below the 3.8% growth in June.
The latest reading was also the lowest level since March as energy bills down under eased on the government’s move to introduce a 5% annual reduction in electricity costs.
However, the CPI missing estimates signaled the odds stayed low for an interest rate cut from the Reserve Bank of Australia (RBA). Minutes of the central bank’s August policy meeting showed rate hikes were still on the table to cool inflation.
RBA Governor Michele Bullock stated earlier this month that inflation remained “too high” and was easing more gradually than preferred to support an interest rate reduction by the end of 2024.
