Asian markets open: Nikkei up 0.24%, Sensex on edge as Nvidia’s verdict looms

A deeply divided and uncertain picture is emerging across Asian markets on Thursday, as a record-setting high on Wall Street clashes with the grim reality of a new trade war front opening in India.

This complex backdrop is further muddied by a blockbuster earnings report from the tech titan Nvidia that, despite its strength, came with a hidden flaw, leaving the region’s investors to navigate a treacherous and conflicting set of signals.

The session is a tapestry of contradictions. In South Korea, a sense of stability prevailed as the country’s central bank held its policy rate unchanged at 2.5 percent for a second straight meeting, a move that was widely expected. The decision helped lift the Kospi index by 0.28%.

But elsewhere, the mood was far from uniform, with Japan’s Nikkei 225 climbing 0.24% while Hong Kong’s Hang Seng index slid 0.79%.

A day of reckoning on Dalal Street

The most dramatic story of the day is unfolding in India, where markets are reopening after a holiday to face their day of reckoning.

A crushing secondary US tariff of 25 percent has now kicked in, pushing the overall duties on a vast range of the country’s exports to an eye-watering 50 percent.

The move has cast a long and dark shadow over the nation’s economic outlook.

“The risks to growth for the Indian economy have naturally become more real,” analysts at Barclays wrote in a note, highlighting that key sectors like gems, jewelry, and electrical machinery face the largest increases.

With the GIFT Nifty indicating a subdued start, Dalal Street is bracing for a volatile session as it begins to price in this new and painful reality.

The Nvidia verdict: a flawed masterpiece

Adding to the complex picture are the highly anticipated results from AI kingpin Nvidia.

On the surface, the report was a stunning success, with the company beating earnings and revenue expectations and forecasting that its blistering sales growth will remain above 50 percent this quarter.

But a critical detail has given the market pause. For the second straight period, the company’s data center revenue fell short of estimates.

This hidden flaw was enough to send the stock slipping in extended trading, despite the headline beat.

The mixed verdict has left Asian chip stocks, which were primed for a major rally, in a state of suspense, unsure whether to celebrate the victory or fear the weakness.

A mining gambit and a Wall Street high

Against this backdrop, other major corporate and market moves are adding to the session’s drama.

Australian rare earths producer Lynas announced its shares have been placed on a trading halt as it prepares to raise about 488 million dollars through a discounted share sale to fund a major expansion.

This flurry of regional activity comes after another record-setting day in the United States, where the S&P 500 climbed to a fresh all-time closing high.

But that strength on Wall Street feels a world away for investors in Asia, who are now forced to confront a far more complicated and perilous landscape.

The post Asian markets open: Nikkei up 0.24%, Sensex on edge as Nvidia's verdict looms appeared first on Invezz