On Tuesday, August 27, the US equity market remained steady as investors awaited NVIDIA’s (NVDA) highly anticipated earnings report.
The Nasdaq Composite Index and the S&P 500 advanced by 0.16% and 0.16%, respectively, while the Dow gained 0.02%.
Concerns about NVIDIA’s earnings overshadowed better-than-expected consumer confidence figures early in the Wednesday Asian session.
Bloomberg TV Asia Pacific Chief Markets Editor David Ingles highlighted the significance of NVIDIA’s earnings, saying,
“Crazy to think a single company’s earnings report may determine the path of global equity markets & financial conditions which could then in turn influence what the Fed can and should do in September.”
Consumer confidence figures, on Tuesday, further eased fears of a hard US economic landing. The CB Consumer Confidence Index increased from 101.9 in July to 103.3 in August. Additionally, the Expectations Index moved away from 80, the recession signal, despite rising concerns about the labor market.
Conference Board Chief Economist Dana M. Peterson commented on components of the survey, saying,
“Consumers’ assessments of the current labor situation, while still positive, continued to weaken, and assessments of the labor market going forward were more pessimistic. This likely reflects the recent increase in unemployment. Consumers were also a bit less positive about future income.”
On Wednesday, August 28, Australian inflation figures drew interest as investors speculated on the chances of a Q4 2024 RBA rate hike.
The Monthly CPI Indicator fell from 3.8% in June to 3.5% in July. However, sticky inflation could keep an interest rate hike on the RBA’s table, possibly testing buyer appetite for ASX 200-listed stocks.
AMP Head of Investment Strategy and Chief Economist Shane Oliver remarked on the inflation figures, stating,
“Unlikely to change the RBAs assessment so we stick to first cut being in Feb for now.”
The Hang Seng Index fell by 0.99% on Wednesday morning. Tech and real estate stocks suffered heavy losses ahead of NVIDIA’s earnings and Friday’s US Personal Income and Outlays Report.
The Hang Seng Mainland Properties Index (HSMPI) declined by 1.74%, while the Hang Seng Tech (HSTECH) slid by 1.85%.
Notable movers included Baidu (9888), down 3.01%, with Tencent (0700) falling by 1.97%. Alibaba (9988) was down 0.88%.
The Mainland equity markets extended their losses from Tuesday, with the CSI 300 and the Shanghai Composite Index falling by 0.63% and 0.13%, respectively.
The Nikkei Index declined by 0.23% on Wednesday morning after the USD/JPY fell by 0.40% on Tuesday, putting pressure on Nikkei Index-listed stocks. Tech stocks were also affected as NVIDIA’s earnings report loomed.
Tokyo Electron Ltd. (8035) and Softbank Group Corp. (9984) saw morning losses of 1.77% and 1.99%, respectively. Nissan Corp. (7201) declined by 1.05%.
The ASX 200 Index declined by 0.45% on Wednesday morning. Oil, gold, and mining stocks dragged the Index lower.
Gold-related stock Northern Star Resources Ltd. (NST) fell by 0.59% after lower gold prices on Wednesday morning. Oil stock Woodside Energy Group (WDS) slid by 0.99% as oil prices steadied on hopes that Libya will resume production.
Mining giants BHP Group Ltd. (BHP) and Rio Tinto (RIO) were down by 1.77% and 1.39%, respectively. Iron ore prices dropped on Wednesday.
Investors should remain alert, with central bank commentary pivotal as NVIDIA’s earnings and the US Personal Income and Outlays Report loom. Closely monitor the news wires, real-time data, and expert commentary to manage trading strategies accordingly. Stay informed with our latest news and analysis to manage positions across the Asian equity markets.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.