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Asia Stocks Stumble Following Nvidia’s Slowing Growth Forecast

Asia Markets Fall as Nvidia Results Disappoint investors Read More...

Asia-Pacific markets declined on Thursday, with shares affected by the higher earnings of American graphics card giant Nvidia (NVDA, Financial) and a sell-off across Adani Group-linked stocks due to fraud allegations against its chairman, Gautam Adani.

Third-quarter revenue was $35.08 billion, a 94% year-on-year growth but lower than Nvidia’s previous double-digit quarterly expansion. Net income rose to $19.3 billion from $9.24 billion a year earlier. Semiconductor-related stocks were mixed; Japan’s Advantest erased early morning loss and ended 1.6% lower, while South Korea’s SK Hynix was down by 1.06%.

Further, the Indian markets dropped in the context of Adani Group, where the stocks plunged. Adani Enterprises fell 19%, Adani Green Energy shed 18.09 percent, and Adani Ports and Special Economic Zone declined 15%. The wider Nifty 50 and BSE Sensex were 0.72% and 0.57% lower, respectively.

Similar conservatism was observed in regional indices. Japan’s Nikkei 225 declined 0.85% to 38,026.17, and the Topix was down 0.54%. South Korea’s Kospi recouped the earlier gain to end 0.19% down 2,480.63 Kosdaq dipped 0.33%. Australia’s benchmark S&P/ASX 200 index was slightly down, ending at 8,323.

Hong Kong’s Hang Seng sank 0.32% to the last hour of trading, while China’s CSI300 managed a paltry 0.09% higher to 3,989.3.

The outcome is mixed and reflects investors’ concern about the future of regional tech, decelerated growth in Nvidia sales, and geopolitical issues connected with the Adani Group debacle.

This article first appeared on GuruFocus.

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