The Asia-Pacific markets experienced a downward trend on Tuesday following the surge in tech shares that propelled the Nasdaq Composite to record highs. Specifically, Nvidia shares saw an increase of more than 2% due to bullish analyst calls highlighting the company’s dominant position in the market. In anticipation of its upcoming earnings report, several Wall Street firms raised their price targets for Nvidia, suggesting a potential 30% gain in share prices. This positive momentum in tech stocks raised concerns among investors in Asia about the impact on companies within Nvidia’s value chain, including Taiwan’s TSMC and Foxconn, as well as South Korea’s Samsung Electronics and SK Hynix.
Market Performances in the Region
While Japan’s Nikkei 225 index continued its upward trend, surpassing the 39,000 mark and gaining 0.29%, other markets in the region saw declines. South Korea’s Kospi index dropped by 0.34%, and the small-cap Kosdaq lost 0.15%. Australia’s S&P/ASX 200 also slipped by 0.17% as investors reviewed the minutes of the central bank’s May meeting, which hinted at potential rate hikes to address inflation risks. On the other hand, Hong Kong’s Hang Seng index fell by 0.86%, and the CSI300 in mainland China decreased by 0.24%.
U.S. Market Recap
Overnight in the U.S., the Dow Jones Industrial Average underperformed the broader market, with JPMorgan Chase weighing down the index. Shares of JPMorgan declined by 4.5% after CEO Jamie Dimon indicated the possibility of an earlier retirement than previously expected during the bank’s annual investment meeting. Dimon also announced that the bank would not repurchase shares at their current levels. Despite the Dow’s decline of 0.49%, the tech-heavy Nasdaq surged by 0.65% to reach a record high of 16,794.87. The S&P 500, representing the overall market, saw a slight increase of 0.09%.
The impact of tech shares on the Asia-Pacific markets was evident as investors reacted to the rally in Nvidia and other tech stocks. While some markets experienced declines, others continued their upward trajectory. The U.S. market also showed mixed performances, with tech stocks driving the Nasdaq to a new peak while JPMorgan’s struggles weighed on the Dow. Moving forward, market participants will closely monitor developments in the tech sector and their implications for global markets.
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