Asian Shares Muted In Lackluster Trade On China Worries
Asian stocks traded mostly lower on Wednesday as investors reacted to the hawkish FOMC minutes and Nvidia’s earnings results released after the U.S. closing bell.
The U.S. chip giant posted better-than-expected fiscal third-quarter results, but warned export restrictions on China would weigh on its fiscal fourth quarter.
The dollar index held around 2-1/2-month lows and gold held below the key $2,000 per ounce level while oil prices were slightly lower after industry data showed U.S. crude stocks rose by nearly 9.1 million barrels in the week ended Nov. 17. Treasuries held steady in Asian trade after climbing Tuesday.
China’s Shanghai Composite index slipped 0.2 percent after police have arrested game-streaming company DouYu International Holdings Ltd.’s founder Chen Shaojie on unspecified charges in a tough crackdown on alleged wrongdoing. Hong Kong’s Hang Seng index also dropped 0.2 percent.
Japan’s Nikkei average was up 0.7 percent as Israel’s government agreed to exchange 50 women and children hostages held by Hamas in Gaza for a four-day pause in fighting.
South Korea’s Kospi average was down 0.6 percent, dragged down by tech stocks. Australian markets were marginally lower amid tech losses. Across the Tasman, New Zealand’s benchmark S&P NZX-50 index eased 0.2 percent.
U.S. stocks ended slightly lower overnight as retail earnings disappointed and minutes from the Fed’s last rate-setting meeting showed officials expect to keep interest rates at a restrictive level for “sometime” and raise interest rates if progress in controlling inflation faltered.
The tech-heavy Nasdaq Composite shed 0.6 percent to snap a five-session winning streak, while the S&P 500 and the Dow eased around 0.2 percent each.
European stocks fell slightly on Tuesday as hawkish comments from Bank of England Governor Andrew Bailey and ECB President Christine Lagarde dented rate cut hopes.
The pan European STOXX 600 ended flat with a negative bias. The German index ended marginally lower while France’s CAC 40 and the U.K.’s FTSE 100 both fell around 0.2 percent.
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