🔹 Tech stocks tumble ahead of Nvidia’s crucial earnings release
🔹 U.S. trade tariffs and weak economic data weigh on global sentiment
🔹 Hong Kong’s AI rally cools, while Australian stocks fight to recover
Asian stock markets struggled to find momentum on Monday, February 19, tracking steep losses from Wall Street as investors braced for Nvidia’s highly anticipated earnings report. Concerns over slowing U.S. economic growth and escalating trade tariffs under President Trump added to market jitters.
The Hang Seng’s tech-fueled rally stalled, while Japan’s Nikkei 225 and South Korea’s KOSPI suffered sharp losses. Meanwhile, Australian stocks attempted to recover from a five-session losing streak, with banking stocks leading the gains.
Tech Stocks on Edge: Nvidia’s Earnings in Focus
Technology-heavy Asian indices saw significant declines as investors took a cautious stance ahead of Nvidia’s earnings release on Wednesday.
- Japan’s Nikkei 225 fell 1.2%, while South Korea’s KOSPI dropped 0.6%, reflecting weakness in semiconductor and AI-related stocks.
- Hong Kong’s Hang Seng remained flat, despite earlier gains in China-listed tech giants.
- Alibaba Group (HK:9988, NYSE:BABA) bounced back after announcing a $52 billion investment in AI over the next three years.
AI-linked stocks retreated after Nvidia’s stock price plunged over 4% last week, amid concerns that China’s DeepSeek AI launch in January could pose competition for U.S. chipmakers.
Major Asian suppliers of Nvidia also faced selling pressure:
✅ SK Hynix Inc (KS:000660) slid 3.6%
✅ Taiwan Semiconductor Manufacturing Co. (TSMC) (TW:2330, NYSE:TSM) dropped 1.8%
Australian Market Tries to Recover After Five-Day Losing Streak
After five consecutive sessions in the red, Australia’s ASX 200 attempted to stabilize, helped by:
✔ Bargain hunting in banking stocks after a sector-wide decline wiped out nearly $40 billion in market value.
✔ Mixed performance in other sectors:
- Software company Wisetech Global Ltd (ASX:WTC) plummeted 23% following mass resignations from its board.
- Block Inc (ASX:XYZ, NYSE:XYZ) fell 10% after posting weaker-than-expected earnings.
- BHP Group Ltd (ASX:BHP) and Rio Tinto Ltd (ASX:RIO) slid due to commodity price weakness.
Despite recent rate cuts by the Reserve Bank of Australia (RBA), policymakers warned that further easing would depend on inflationary trends, keeping investor sentiment cautious.
China’s AI-Driven Market Rally Pauses
After a month of strong gains, fueled by optimism over China’s artificial intelligence advancements, Chinese markets showed signs of cooling:
📉 Shanghai Composite and CSI 300 indices declined slightly, following a robust rally earlier in the year.
📉 Hong Kong’s tech stocks struggled, as investors took profits from earlier gains.
Indian Stocks Set for a Recovery?
💹 India’s Nifty 50 index futures signaled a positive open, as investors looked for bargain-buying opportunities after an extended decline since mid-2024.
Key Takeaways
📊 Asian stock markets remain under pressure, with global investors wary of:
✔ Nvidia’s upcoming earnings report, which could dictate the future of AI-related stocks.
✔ The impact of Trump’s trade policies, especially potential tariffs on key industries like semiconductors.
✔ The Federal Reserve’s next policy move, as Wall Street looks for signs of interest rate cuts.
📉 Will Nvidia’s earnings spark a fresh rally, or will tech stocks face more downside risk? Keep following DailyForex.pk for real-time market updates!