The Asia-Pacific markets experienced a significant decline on Tuesday following the surge in tech shares that propelled the Nasdaq Composite to record highs overnight. One notable stock that contributed to this surge was Nvidia, which saw its shares increase by more than 2% due to bullish analyst calls emphasizing the company’s strong position in the market.
Furthermore, several Wall Street firms raised their price target on Nvidia before its earnings report, suggesting that the stock could potentially rise by as much as 30% from its current levels. This optimistic outlook on Nvidia’s performance has investors in Asia closely monitoring companies within Nvidia’s value chain, such as Taiwan’s TSMC and Foxconn, as well as South Korea’s Samsung Electronics and SK Hynix.
In terms of market performance, South Korea’s Kospi experienced a decline of 0.34%, while the smaller Kosdaq lost 0.15%. On the other hand, Japan’s stocks saw an increase, with the Nikkei 225 surpassing the 39,000 mark and gaining 0.29%. The broader Topix index also rose by 0.21%. However, Australia’s S&P/ASX 200 slipped by 0.17% as investors digested the minutes from the central bank’s May meeting, which revealed considerations of raising rates due to inflation risks.
Overnight in the U.S., the Dow Jones Industrial Average underperformed compared to the broader market, largely due to a significant decline in JPMorgan Chase’s stock. JPMorgan shares fell by 4.5% after CEO Jamie Dimon hinted at the possibility of an earlier retirement than previously anticipated. Dimon also stated that the bank would not be repurchasing shares at their current levels. Despite this, the Nasdaq Composite managed to gain 0.65% and close at a record high of 16,794.87, while the Dow fell by 0.49% and the S&P 500 inched up by 0.09%.
The Asia-Pacific markets were heavily influenced by the performance of tech shares and companies like Nvidia, with investors keeping a close eye on developments in the U.S. market. The impact of Wall Street’s bullish outlook on tech stocks like Nvidia was felt across various regions, showcasing the interconnectedness of global markets.
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