Asian Stocks Waver as Markets Await Nvidia Earnings and React to Canada's EV Tariffs

Asian stocks edge lower, China hit by Canada EV tariffs By Investing.com

Investing.com-- Most Asian stocks fell on Tuesday, with sentiment towards Chinese markets worsening after Canada joined the U.S. and Europe in imposing steep import tariffs on the country's electric vehicle sector. Broader markets were also held back by speculation over U.S. interest rates, while caution kicked in before a closely-watched earnings report from NVIDIA Corporation (NASDAQ:NVDA) this week. Regional markets took middling cues from a mixed overnight close on Wall Street. While the Dow Jones Industrial Average ended at a record high, this came at the expense of losses in the S&P 500 and the NASDAQ Composite, as expectations of U.S. interest rates saw traders pivot out of heavyweight technology stocks. This trend spilled over into Asian trade. U.S. stock index futures also fell on Tuesday. A spike in oil prices- on heightened tensions in the Middle East and disruptions in Libya- also spooked markets. Losses in Chinese EV stocks were relatively limited, given that Canada represents a smaller export market for the sector than Europe. But Canada's move still drove ire from Beijing, souring sentiment towards China with the prospect of a renewed trade war with the west. Traders were concerned that Beijing could roll out retaliatory tariffs. Canada also imposed a 25% duty on Chinese steel imports. Losses in major U.S. technology stocks spilled over into their Asian peers, as investors pivoted out of the sector in anticipation of lower interest rates. South Korea's KOSPI lost 0.4%, with chipmaking stocks also seeing some weakness before closely watched earnings from Nvidia on Wednesday, which are expected to show whether the artificial intelligence trade is still in vogue. Japanese stocks steadied from recent losses, but remained under pressure from strength in the yen. The Nikkei 225 index rose 0.4%, while the TOPIX added 0.2%. The yen lost some ground after Japan's corporate services price index- a gauge of producer inflation- read slightly weaker than expected. Concerns over China weighed on Australia's ASX 200, which fell slightly. But further losses in the ASX were limited by a nearly 2% jump in BHP Group Ltd (ASX:BHP), after the world's biggest miner clocked a stronger-than-expected profit. Futures for India's Nifty 50 index pointed to a mildly weaker open, with local stocks set to see some profit-taking after the Nifty broke above the closely-watched 25,000 level.

Asian stocks fluctuate as Nvidia earnings awaited: Markets wrap

Asian markets moved in narrow ranges following declines in tech giants dragging Wall Street down. Japanese and South Korean stocks turned slightly positive, with mild gains in Australia. Nvidia earnings, expected to be strong, could impact the market significantly. The Fed's potential rate cuts and China's trade tensions with Canada are also under scrutiny.Asian shares moved in narrow ranges after tech giants dragged down Wall Street, as focus shifted from the Federal Reserve's policy outlook to Nvidia Corp.'s earnings later this week. Japanese and South Korean stocks turned slightly higher after earlier losses, with mild gains in Australia. Hong Kong futures pointed to a weak opening, while contracts for US peers were steady after some of the world's largest tech names pushed US stocks lower. A gauge of the "Magnificent Seven" megacaps slid 1.2% on Monday. While more than half of the shares in the S&P 500 gained, the US equity benchmark edged lower -- a consequence of weakness in the tech giants that dominate it. Treasury 10-year yields rose two basis points to 3.82% on Monday, while the dollar strengthened as markets monitored the extent to which the Fed likely to cut interest rates next month. Expectations heading into Nvidia's earnings on Wednesday are high, with analysts anticipating another strong consensus beat that could prompt the chipmaker to raise its profit guidance. The results may provide further clarity on artificial intelligence demand, with Nvidia being the direct beneficiary of the intense spending by companies building out AI infrastructure. "Move over Powell - it's Jensen Huang's turn to move markets," said Anthony Saglimbene at Ameriprise, referring to Nvidia's chief. "In our view, Nvidia's earnings report this week may actually have more impact on the overall market than Powell's Jackson Hole speech last week." Chinese consumers returned to the spotlight after PDD Holdings Inc.'s shares fell the most since 2022 in New York. A warning of slow sales by Temu's owner was the latest disappointment from the sector, where the country's biggest consumer companies have reported revenue misses. Also in China, the government urged Canada to immediately correct the "wrong practices" of new tariffs against the Asian nation. Canada, an export-driven economy that relies heavily on trade with the US, has been closely watching moves by the Biden administration to erect a much higher tariff wall against Chinese EVs, batteries, solar cells, steel and other products. US inflation figures this week will likely reinforce that long-awaited rate cuts are coming soon, while a reading on consumer spending is seen indicating that the central bank has been successful at keeping the expansion intact. Economists see the personal consumption expenditures price index excluding food and energy -- the Fed's preferred measure of underlying inflation -- rising 0.2% in July for a second month. That would pull the three-month annualized rate of so-called core inflation down to 2.1%, a smidgen above the central bank's 2% goal. Fed Bank of San Francisco President Mary Daly said it's appropriate to begin cutting rates, while her Richmond counterpart Thomas Barkin said he still saw upside risks for inflation, though he supported "dialing down" rates. "Powell sealed the deal for a September cut at Jackson Hole -- leaving intact our thesis for continued broadening/rotation," said Ohsung Kwon at Bank of America Corp. "But don't sleep on Nvidia earnings, a consistent driver of S&P returns and still a risk to markets if they disappoint." In corporate news, LG Electronics Inc. is considering an initial public offering for its India business, tapping a booming stock market to help hit a target of $75 billion in electronics revenue by 2030. BHP Group Ltd., the world's biggest miner, reported full-year profit edged up 2%, in line with analyst forecasts, even as China's property market continued to weigh on its economy and demand for iron ore. In commodities, oil edged lower early Tuesday, following gains on Monday as Libya's eastern government said it will halt exports. Gold was little changed.