Asian Shares Retreat As Nvidia Outlook Disappoints

(RTTNews) - Asian stocks declined on Thursday, with tech stocks bearing the brunt of selling after Nvidia's earnings forecast fell short of investor expectations.

Investors also awaited the release of a key U.S. inflation reading on Friday that is likely to show that consumer price increases continued to run cool in July.

The dollar was subdued in Asian trading ahead of the release of the latest U.S. GDP estimate and U.S. initial jobless claims figures later in the day.

Gold ticked higher after a Federal Reserve official said its time to move on rate cuts.

Oil rebounded from two days of losses after Ukraine's military said it had attacked an artillery depot and two oil storage facilities in Russia.

China's Shanghai Composite dropped half a percent to 2,823.11 after investment bank UBS cut its 2024 GDP growth forecast for China to 4.6 percent from 4.9 percent, citing a deeper-than-expected property market downturn.

Hong Kong's Hang Seng index rose 0.53 percent 17,786.32 as investors reacted to mixed earnings results.

Chinese EV maker Li Auto plunged 8.9 percent after reporting a sharp decline in profits in the second quarter. Food delivery giant Meituan jumped 12.3 percent as it posted a bigger than expected 21 percent rise in second-quarter revenue.

Japanese markets ended on a flat note as technology stocks pared declines. The Nikkei average finished marginally lower at 38,362.53 after hitting a low or 37,970.20 during intraday. The broader Topix index ended with a positive bias at 2,693.02.

Electronic component maker Nidec Corp tumbled 3.3 percent after U.S. server manufacturer Super Micro Computer - with which it is building water-cooling modules for servers - reported a delay in filing its annual report, amid allegations of accounting manipulation, sibling self-dealing and sanctions evasion.

Seoul stocks fell sharply as tech heavyweights faced selling pressure following Nvidia's underwhelming earnings result.

The Kospi average tumbled 1.02 percent to 2,662.28, with chipmakers Samsung Electronics Co. and SK Hynix falling 3.1 percent and 5.4 percent, respectively.

Australian markets ended a tad lower ahead of retail sales data due on Friday. The benchmark S&P/ASX 200 dropped 0.33 percent to 8,045.10 while the broader All Ordinaries index settled 0.33 percent lower at 8,263.60.

Diversified miner Mineral Resources plummeted 8.1 percent after reporting a nearly 80 percent slump in its annual profit. Retail giant Wesfarmers slumped more than 4 percent despite posting strong FY 2024 earnings results.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index closed 0.94 percent lower at 12,353.61 despite a measure of the country's business confidence climbing in August to the highest level in a decade.

U.S. stocks ended lower overnight, with tech stocks coming under selling pressure before Nvidia's earnings release and Friday's PCE data.

The Dow dipped 0.4 percent, the S&P 500 shed 0.6 percent and the tech-heavy Nasdaq Composite lost 1.1 percent.