Asian shares declined Wednesday as investors cautiously awaited Nvidia‘s upcoming earnings report, amid broader concerns about potential interest rate adjustments and market risks. The retreat follows recent volatility in cryptocurrency markets and reflects ongoing uncertainty about the trajectory of global economic growth.
Global markets are closely watching Nvidia, a key player in the artificial intelligence sector, as its financial results could signal the strength of demand for AI-related technologies. Simultaneously, the Federal Reserve’s future monetary policy remains a central focus, with previous expectations of a December interest rate cut now less certain due to persistent inflation above the Fed’s 2% target. This uncertainty is compounded by anxieties over a potential “AI bubble,” identified as a meaningful risk by nearly half of global fund managers surveyed by Bank of America Global research.
Several Asian markets experienced losses.Japan’s Nikkei 225 fell, while South Korea’s Kospi also edged lower. Hong Kong’s Hang Seng index saw modest declines.
The cautious sentiment extends to currency markets, where the U.S. dollar weakened to 155.46 Japanese yen, down from 155.51 yen.The euro remained stable at $1.1581.
Commodity markets also saw movement, with benchmark U.S. crude oil falling 19 cents to $60.48 a barrel and brent crude declining 20 cents to $64.69 a barrel.
Recent market fluctuations have included a brief dip in Bitcoin’s price below $90,000 on Tuesday,following a peak of nearly $125,000 last month,though it partially recovered to $91,700 early Wednesday. These shifts underscore the sensitivity of markets to both macroeconomic factors and developments within specific sectors like technology and cryptocurrency.