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Asian equities declined on Thursday, reflecting Wall Street’s cautious sentiment following Nvidia Corp.’s underwhelming revenue forecast. Bitcoin, however, reached a new all-time high. Stocks in Japan, China, Hong Kong, and Taiwan fell, while US equity futures extended losses during Asian trading hours after Nvidia’s third-quarter earnings met estimates but missed the more optimistic projections for future revenue.

Nvidia’s outlook is likely to impact its suppliers and global markets, given its prominence in the artificial intelligence sector. Meanwhile, traders are watching the fallout from a US indictment of Gautam Adani and awaiting President-elect Donald Trump’s nominee for Treasury secretary.

A key index tracking Asia’s semiconductor stocks dropped by up to 1%. Adani Group’s dollar-denominated bonds fell as much as 10 cents, and its renewable energy units canceled a $600 million bond issuance following the charges. The indictment accuses Adani of orchestrating a $250 million bribery scheme to secure solar energy contracts in India, according to prosecutors in Brooklyn, New York.

Treasury yields dipped after rising earlier in the session, reflecting tepid demand in a recent 20-year government bond auction. The dollar softened after Wednesday’s gains amid geopolitical developments, including Ukraine’s use of British cruise missiles against Russian targets for the first time. 

Amy Xie Patrick of Pendal Group commented on Bloomberg Television that Nvidia’s performance may signal a peak for the company, saying, “It beat estimates but didn’t exceed them enough.” Shares of Taiwan Semiconductor Manufacturing Co. fell as much as 1.5% at the open.

Bitcoin surged closer to $100,000, buoyed by growing US adoption of digital assets under the pro-crypto stance of the Trump administration. MicroStrategy’s significant Bitcoin purchases also contributed to its rally. In Japan, labor unions are urging the government to accelerate wage growth initiatives, while Turkey prepares to announce an interest rate decision. Key economic data expected in Asia include Indonesia’s current account balance and Hong Kong’s inflation figures.

Federal Reserve Bank of Boston President Susan Collins emphasized the need for additional interest rate cuts but cautioned against rushing or delaying adjustments. Meanwhile, the swaps market indicates less than a 50% likelihood of a December rate cut.

Traders are closely monitoring Trump’s picks for key administration roles, including Treasury secretary, with Kevin Warsh and Marc Rowan among the contenders. Howard Lutnick, CEO of Cantor Fitzgerald LP, has been nominated to lead the Commerce Department, a critical position for implementing Trump’s trade and tariff policies. 

Ed Mills of Raymond James stressed the importance of the Treasury secretary’s relationship with the Federal Reserve, noting that tax policies and the debt ceiling will heavily depend on this dynamic.

Paraphrasing text from "Bloomberg" all rights reserved by the original author.