Asia stocks fall as Nvidia rattles tech, but overall losses limited

Asia stocks fall as Nvidia rattles tech, but overall losses limited

Investing.com– Asian stocks retreated on Thursday, pressured chiefly by losses in the technology sector following underwhelming guidance from market darling Nvidia, although expectations of lower interest rates helped limit overall losses.

Declines in the tech sector were also relatively muted, given that NVIDIA Corporation (NASDAQ:NVDA) still beat expectations with its quarterly earnings. Analysts were seen maintaining a bullish stance on the firm.

Regional markets took a weak lead-in from Wall Street, with U.S. stock index futures falling in Asian trade as concerns over Nvidia rattled the technology sector. The Dow Jones Industrial Average and the S&P 500 were also nursing a fall from record highs.

Asian tech, chipmakers fall tracking Nvidia
Tech-heavy Asian bourses were the worst performers for the day, with South Korea’s KOSPI, Hong Kong’s Hang Seng and the Taiwan Weighted index losing around 0.8% each.

Losses in tech also pulled Japan’s Nikkei 225 down 0.2%, while the TOPIX lost 0.3%.

Tech losses were weighted largely towards chipmakers, especially those with direct exposure to Nvidia- which fell as much as 8.5% in aftermarket trade.

Taiwan’s TSMC (TW:2330) (NYSE:TSM) fell 2%, while Hon Hai Precision Industry Co Ltd (TW:2317), also known as Foxconn, lost 1.6%.

Memory chip maker and key Nvidia supplier SK Hynix Inc (KS:000660) slid 6%, while bigger rival Samsung (KS:005930) lost 3%.

In Japan, chip testing equipment maker Advantest lost 0.5%, while Tokyo Electron shed 1.1%.

Semiconductor Manufacturing International Corp (HK:0981)- the biggest chipmaker in China and a local rival for Nvidia, fell slightly.

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