Asian stock markets followed Wall Street’s lead, slipping into negative territory as disappointing results from tech giant Nvidia weighed heavily on investor sentiment. The company’s lackluster earnings report sparked concerns about the broader tech sector, leading to a decline in shares across the region.
Nvidia’s results fell short of expectations, with the company citing weaker demand for its graphics chips and data center hardware. The news sent its shares tumbling, and had a ripple effect on other tech stocks, causing them to decline in sympathy.
The Asian markets, which had been trading in a narrow range, succumbed to the selling pressure, with major indices in Japan, South Korea, and Hong Kong all finishing in the red. The region’s investors were already on edge, worried about the impact of rising interest rates and inflation on economic growth.
The disappointing results from Nvidia added to these concerns, leading to a risk-off sentiment in the markets. Investors sought safe-haven assets, such as government bonds, and shunned riskier investments like stocks.
As the day wore on, the selling pressure intensified, with the Nikkei 225 in Japan closing down 1.2%, the Kospi in South Korea falling 1.5%, and the Hang Seng in Hong Kong shedding 1.8%. The decline in Asian markets mirrored the losses on Wall Street, where the Nasdaq Composite Index had tumbled 2.5% overnight.
The disappointing results from Nvidia have raised concerns about the tech sector’s ability to withstand the economic headwinds, and investors will be watching closely for signs of resilience in the coming days.