TOKYO — Asian shares experienced a downward trend on Wednesday, diverging from a record high on Wall Street as investors closely anticipated Nvidia’s highly awaited earnings report.
Japan’s Nikkei 225 index declined nearly 0.3% in morning trading, settling at 38,188.50.
In contrast, Toyota’s stock surged over 3% following reports that the automaker is poised to announce a strategic partnership focused on fuel cell technology with European manufacturer BMW.
Fuel cell vehicles, known for their ecological benefits, utilize electricity generated from the reaction between hydrogen and oxygen, producing water as a byproduct. Japanese business sources indicate that the partnership announcement is expected next week.
Amid challenges in the electric vehicle sector, Toyota Motor Corp. continues to champion fuel cell technology as a viable alternative.
Australia’s S&P/ASX 200 index faced a 0.6% loss, closing at 8,024.70, influenced by lower than forecast inflation figures, which reported a 3.5% decrease year-over-year for July.
South Korea’s Kospi index also fell by 0.5%, ending at 2,674.72.
Hong Kong’s Hang Seng index, following a period of gains, dipped 0.8% to 17,735.39. Analysts suggest that despite this week’s better-than-expected industrial profit reports from China, it may not be sufficient to sustain market optimism. The Shanghai Composite index followed suit with a 0.3% decrease, settling at 2,839.34.
Eyes across the financial landscape remain fixated on Nvidia’s earnings report, slated for release on Wednesday. The tech giant has significantly impacted market dynamics, boasting a market valuation exceeding $3 trillion.
Nvidia’s stock rose by 1.5% on Tuesday, contributing to a remarkable 159% increase in value this year.
“Nvidia’s earnings are the focus, representing a crucial point of interest for investors,” said an industry expert. “It’s the primary concern many will center on this week.”
Additionally, investor anticipation grows around the Federal Reserve’s potential interest rate cut at its upcoming meeting in September. Market participants are looking ahead to Friday’s release of the government’s inflation data, including the personal consumption expenditures (PCE) report for July.
In updates from Wall Street, the Dow Jones Industrial Average added 9 points, or less than 0.1%, marking its second consecutive record high. The index is currently on an impressive eight-day winning streak.
The benchmark S&P 500 and Nasdaq composite also recorded gains of 0.2%, with the S&P 500 now just 0.8% shy of its all-time high reached last month. Minor fluctuations were noted, as slightly more stocks declined than advanced on the New York Stock Exchange.
On a positive note, the Conference Board revealed that the U.S. consumer confidence index rose to 103.3 in August, up from 101.9 in July, highlighting the importance of consumer spending in the U.S. economy, which constitutes nearly 70% of economic activity.
Overall, the S&P 500 climbed 8.96 points to reach 5,625.80. The Dow increased by 9.98 points to close at 41,250.50, while the Nasdaq rose by 29.05 points, finishing at 17,754.82.
Treasury yields remained stable in the bond market, with the yield on the 10-year Treasury edging up to 3.83% from 3.82% late Monday.
In energy markets, benchmark U.S. crude prices rose by 22 cents to $75.75 per barrel, while Brent crude gained 25 cents, reaching $79.80 per barrel.
In currency trading, the U.S. dollar strengthened against the Japanese yen, rising to 144.35 yen, compared to 143.91 yen previously. The euro traded at $1.1179, down from $1.1188.
