Regional markets on Thursday showed a mixed response to the overnight session on Wall Street. NVIDIA Corporation's (NASDAQ:NVDA) performance and guidance played a significant role in shaping investor sentiment. Heightened tensions between Russia and Ukraine also added to the overall market volatility.
Unraveling the Impact of NVIDIA's Guidance on Asian Markets
Section 1: NVIDIA's Impact on Asian Tech Stocks
In Asian trade, U.S. stock index futures sank, tracking an over 1% aftermarket drop in Nvidia. Technology-heavy Asian bourses mostly fell, with direct exposure to Nvidia resulting in a mixed bag of performances. For example, Japan's Nikkei 225 index shed 0.7%, with chip stocks like Advantest Corp. (TYO:6857) and Tokyo Electron Ltd. (TYO:8035) both losing ground. South Korea's KOSPI rose 0.2%, buoyed by small gains in Nvidia supplier SK Hynix Inc (KS:000660), while its peer Samsung Electronics Co Ltd (KS:005930) rose 0.5%. Taiwan shares of TSMC (TW:2330) (NYSE:TSM), the world's biggest contract chipmaker and a major Nvidia supplier, fell 1%, and those of Hon Hai Precision Industry Co Ltd (TW:2317), also known as Foxconn (SS:601138), lost nearly 2%. This shows how Nvidia's performance can have a ripple effect across different Asian markets and sectors.Section 2: Russia-Ukraine Tensions and Market Sentiment
Heightened tensions over Russia and Ukraine kept overall risk appetite limited. This had a broader impact on Asian markets, as weakness in Asian tech spilled over into other sectors. Hong Kong's Hang Seng index shed 0.2%, with shares of Semiconductor Manufacturing International Corp (HK:0981), China's biggest chipmaker, trading sideways. China's Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell around 0.3% each, while Australia's ASX 200 fell 0.1%. The uncertainty due to these tensions created a cautious environment for investors, affecting market performance across the board.Section 3: Adani Group's Impact on Indian Stocks
In India, the U.S. authorities' accusations against Chairman Gautam Adani of an over $250 million bribery scheme added to pressure on broader Indian stocks. Shares of listed companies under the conglomerate, most notably flagship Adani Enterprises Ltd (NS:ADEL) and Adani Ports and Special Economic Zone Ltd (NS:APSE), fell 10% to hit their lower circuit breakers. Multiple media reports said Adani Green Energy Ltd (NS:ADNA) had also scrapped a planned bond issuance. The Nifty 50 slid 0.9% to an over five-month low, pressured by these losses. This shows how external factors can have a significant impact on specific sectors and companies within a market.