Asian Shares Drop Amid Nvidia Disappointment and Mixed Global Market Signals

Asian shares dropped following Nvidia's less-than-impressive financial results, causing a ripple effect in global markets. While the dollar steadied, Treasury yields improved slightly. European markets are set for a mixed opening. In the U.S., job market reports are awaited. Meanwhile, commodity markets saw minor fluctuations in gold and oil prices.

Asian shares took a downturn on Thursday, mirroring Wall Street futures, after Nvidia's financial results failed to meet bullish investor expectations. The dollar remained stable, and the Treasury yield curve inched closer to turning positive.

European markets are anticipated to open with mixed results. EUROSTOXX 50 futures dipped by 0.2%, and FTSE futures edged up by the same margin. Inflation data from Germany and Spain are awaited, with potential downside misses possibly leading to further policy easing in Europe.

In the U.S., the focus is on the upcoming weekly jobless claims report, crucial for the Federal Reserve's assessment of the labor market. MSCI's Asia-Pacific shares outside Japan fell 0.3%, and tech stocks drove the Nikkei down by 0.2% and South Korea by 1%.

Nvidia's third-quarter revenue forecast of $32.5 billion exceeded Wall Street's expectations, yet still disappointed bullish investors, causing a nearly 7% drop in its shares in after-hours trading. As a result, Nasdaq futures fell by 0.7%, and S&P futures slipped by 0.3%.

Nvidia's chip contractor, TSMC, saw a 1.8% decline, pulling the broader Taiwanese market down by 0.7%. Analyst Tony Sycamore from IG commented that Nvidia might be a victim of its own success, suggesting it may be time to diversify investments into other chipmakers.

China's blue-chip stocks remained flat, following a three-day slump due to disappointing earnings reports from Chinese companies and UBS's reduced GDP growth forecast for China from 4.9% to 4.6%.

U.S. National Security Adviser Jake Sullivan wrapped up talks in Beijing aiming to ease tensions between the U.S. and China. Meanwhile, China's CATL dropped 1.1% after being targeted by Republican lawmakers, and Meituan soared by 10.7% following a robust revenue report.

Atlanta Fed President Raphael Bostic indicated it might be time for rate cuts, pending confirmation by upcoming job and inflation reports. The dollar held steady, and Treasury yields remained almost unchanged, with the curve close to inverting.

Gold prices inched closer to record levels, while oil prices saw slight gains amid mixed signals about demand and supply disruptions. Brent crude futures rose by 0.2%, and U.S. West Texas Intermediate crude futures gained 0.3%.

(With inputs from agencies.)