Asian markets are expected to open lower due to Nvidia's mixed financial results. Nvidia reported a 94% increase in revenue for the third quarter, but this growth is slower compared to previous quarters. The company's net income also rose significantly. Investors are cautious, especially in the tech sector.
Japan's Nikkei 225 and Hong Kong's Hang Seng index are expected to open lower, while Australia's S&P/ASX 200 has started positively. The economic outlook in Asia is expected to change by 2025 due to new policy measures in China, a slowing Indian economy, and increased infrastructure investments in Southeast Asia. HSBC analysts suggest that identifying quality stocks that are currently undervalued could yield favorable results.
In India, investors are concerned about stocks associated with Gautam Adani following his indictment on bribery and fraud charges. This could impact the broader market sentiment.
Deutsche Bank's macro strategist warns about stretched market valuations and the potential for a significant pullback in the United States. Federal Reserve Governor Michelle Bowman expresses concerns about achieving inflation targets and the risks to price stability. Federal Reserve Governor Lisa Cook anticipates further interest rate cuts.
The mixed signals from Nvidia's earnings report and the legal issues surrounding the Adani Group may create volatility in Asian markets. Investors will be monitoring the Federal Reserve's actions and statements regarding inflation and interest rates. With high valuations, market corrections are a possibility, prompting a more cautious approach from investors.
The current economic climate presents challenges for investors, but also opportunities in sectors poised for growth.