Asian equities saw modest gains on Thursday, despite mixed earnings from Nvidia Corp. and ongoing tariff-related uncertainties. Shares in Australia, Hong Kong, and Japan rose, while South Korean stocks declined. Chinese stocks showed fluctuating performance in early trading, but a regional equity index managed to rise for a second consecutive day.
Futures for the S&P 500 and Nasdaq 100 remained steady after slight gains for both indices on Wednesday. Nvidia’s post-market performance, however, was underwhelming, as its quarterly results, while positive, failed to meet high investor expectations, leading to a dip in its stock.
Tariff Announcements Add to Market Volatility
US President Donald Trump’s latest tariff announcements continued to rattle markets. On Wednesday, Trump stated that the US would impose 25% tariffs on European Union goods, with additional levies on Mexico and Canada set to begin on April 2. These comments, however, were somewhat contradictory, leaving investors uncertain about the timing and scope of the tariffs.
The barrage of tariff-related news caused volatility in currency markets, with the dollar gaining strength while the Canadian dollar and Mexican peso saw declines. The uncertain tariff environment has contributed to a broader market weakness, affecting both equities and cryptocurrencies.
Investor Uncertainty Over US Tariff Plans
Marvin Loh from State Street commented on the market’s uncertainty, saying, “The somewhat contradictory statements from the administration around the timing and extent of tariffs is keeping investors off sides.” He added that investors are still debating whether Trump’s plans will be delayed or if the aggressive rhetoric will become a reality.
Treasury Yields and Bitcoin Retreat
US Treasury yields slipped, after a rally on Wednesday that had brought the US 10-year yield to its lowest level since mid-December. A gauge of the US dollar held onto gains from the previous day, while Australian bond yields fell on Thursday.
Bitcoin, which had been under pressure throughout the week, dropped to around $84,000—more than 20% lower than its peak last month. The decline was further exacerbated by outflows from exchange-traded funds, which amplified selling pressure. Meanwhile, oil prices fell, and gold remained largely unchanged.
Nvidia’s Earnings Miss Expectations
Despite being seen as a key player in the artificial intelligence (AI) sector, Nvidia’s earnings results did not meet the high expectations of many investors. The company reported a revenue of $11 billion from its Blackwell product in the fourth quarter, which Nvidia called its “fastest product ramp” in history. However, concerns over AI industry growth and data center spending dampened investor enthusiasm, leading to a decline in Nvidia’s stock after hours.
Derren Nathan from Hargreaves Lansdown stated, “Nvidia has swept aside concerns about production of its Blackwell chips, and threats to the boom in demand for computing power with top and bottom line beats for the fourth quarter, and guidance for the current quarter ahead of expectations.”
Focus on Upcoming Economic Data
Investors are awaiting additional economic data to gauge market direction. Later Thursday, euro-zone consumer confidence figures will be released, alongside US GDP data and initial jobless claims. Additionally, the Group-of-20 finance ministers and central bank governors are meeting in Cape Town to discuss global financial issues.
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