Asian shares were trading mixed on Thursday, with investor sentiment in Tokyo getting a boost from soaring Nvidia earnings. Japan’s benchmark Nikkei 225 gained 1.3%, while Australia’s S&P/ASX 200 sank 0.5%. South Korea’s Kospi added 0.1%, but Hong Kong’s Hang Seng slipped 1.6% and the Shanghai Composite shed 1.2%.
Semiconductor-related issues were on the rise following news that Nvidia’s profit had skyrocketed above forecasts, with quarterly net income climbing more than sevenfold from a year earlier to $14.88 billion. This news comes as a significant boost for the iconic brand behind the recent artificial intelligence boom.
In other news, the Bank of Korea kept its policy rate unchanged, as was widely expected. On Wall Street, indexes retreated from their records as concerns about high interest rates weighed on the market. The S&P 500 fell 0.3%, the Dow Jones Industrial Average sank 0.5%, and the Nasdaq composite slipped 0.2%.
The Federal Reserve released the minutes of its last policy meeting, which showed officials suggesting it “would likely take longer than previously thought” to get inflation fully under control. This news dampened hopes of a rate cut, with some participants indicating a willingness to raise rates if inflation worsens.
Lululemon Athletica saw a 7.2% drop after its chief product officer announced departure to pursue another opportunity. The company also announced a new organizational structure that won’t replace the role of chief product officer.
In the bond market, the yield on the 10-year Treasury rose slightly, while the two-year yield, which moves more closely with expectations for the Fed, also saw an increase. Despite the harsh talk in the Fed’s minutes, recent reports showing softening in inflation and certain parts of the U.S. economy may have changed the minds of some officials.
Central banks around the world are eager to cut interest rates, but may not go far given the strong economies and high inflation levels. U.S. benchmark crude fell to $77.00 a barrel, while Brent crude lost ground to $81.39 a barrel. The U.S. dollar fell against the Japanese yen but rose against the euro.
Overall, the markets are reacting to a mix of positive and negative news, with investors closely watching developments in the global economy and central bank policies.
