Asia stocks dip as US rate cut cheer eases; tech on edge before Nvidia

Updates at 00:35 ET (04:35 GMT) with India open, HK earnings, Nissan 

Investing.com-- Most Asian stocks retreated on Tuesday as a rally on optimism over U.S. interest rate cuts ran dry, while investors remained averse to technology shares in anticipation of key earnings from Nvidia. 

Chinese shares stalled after rallying to multi-year highs on Monday, while Japanese stocks hovered below record highs. Losses in commodity stocks also weighed on Australian markets.

Asian markets tracked a drop in Wall Street futures as U.S. President Donald Trump’s abrupt firing of Federal Reserve Governor Lisa Cook sparked concerns over the Fed’s independence. S&P 500 Futures fell 0.1% in Asian trade, having earlier fallen as much as 0.4%. 

Overnight losses in Wall Street also spilled over into Asia, as caution over interest rates and Nvidia’s earnings weighed on risk assets. 

China shares steady near multi-year highs

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose about 0.1% each. The CSI 300 remained close to a three-year high, while the Shanghai Composite hovered below its highest level in nearly a decade. 

Hong Kong’s Hang Seng index fell 0.2% from a near four-year high. 

Chinese markets rallied sharply through August amid increasing expectations that Beijing will dole out more economic relief, in particular measures aimed at boosting consumption and supporting local industries. 

Chinese tech stocks were a major part of this rally, with chipmakers buoyed by Beijing promoting locally-made chips while scrutinizing offerings from Nvidia. 

HSBC analysts said in a recent note that they expected Chinese stocks to continue outperforming this year, and also hiked their year-end targets for Chinese bourses.

A host of major Hong Kong-listed firms are set to report earnings this week, with prints from PetroChina Co Ltd (HK:0857), Ping An Insurance (HK:2318), Meituan (HK:3690), Trip.com (HK:9961), and China Overseas (HK:0688) due on Tuesday and Wednesday.

China Life Insurance Co Ltd (HK:2628), Haier Smart Home Co Ltd (HK:6690), CNOOC Ltd (HK:0883), Li Auto (HK:2015), Alibaba Group (HK:9988), and several major Chinese banks are set to report in the remainder of the week. 

Japan, S.Korean stocks dip as tech retreats ahead of Nvidia 

Japanese and South Korean markets logged the biggest losses among their Asian peers on Tuesday. The Nikkei 225 and TOPIX indexes lost around 0.9% each, while the KOSPI shed 1%. 

Both regions were pressured by losses in tech stocks, as investors locked-in some profits in the sector ahead of key earnings from NVIDIA Corporation (NASDAQ:NVDA), which are due on Wednesday. 

Japanese Nvidia supplier Advantest Corp. (TYO:6857) and Nvidia investor SoftBank Group Corp. (TYO:9984) fell some 1% and 2.5%, respectively. In South Korea, memory chip suppliers SK Hynix Inc (KS:000660) and Samsung Electronics Co Ltd (KS:005930) fell between 0.4% and 2%. 

Taiwan’s TSMC (TW:2330), a major Nvidia supplier, was flat in Taipei trade. 

Nvidia’s earnings come amid some growing doubts over the long-term prospects of artificial intelligence– doubts that had battered tech stocks over the past week. Nvidia is largely considered as a bellwether for AI and tech demand, with any signs of earnings weakness likely to trigger more losses in tech. 

Nvidia is also expected to address potential sales headwinds in China, especially as Beijing scrutinizes its China-specific H20 chip. 

In Japan, Nissan Motor Co., Ltd. (TYO:7201) was the worst performer on the Nikkei, down 6% after its second-largest shareholder, Mercedes-Benz, said it will offload its roughly $346 million stake in the automaker. 

Broader Asian markets fell on Tuesday. Australia’s ASX 200 index shed 0.6% on losses in mining stocks, after iron ore major Fortescue Metals Group Ltd (ASX:FMG) clocked dismal annual earnings. The stock shed 1.6%, while bigger peers BHP Group Ltd (ASX:BHP) and Rio Tinto Ltd (ASX:RIO) fell about 0.5% apiece.

Losses in miners largely offset an over 8% rally in supermarket operator Coles Group Ltd (ASX:COL), after it flagged a positive start to fiscal 2026, helping investors look past middling earnings for fiscal 2025. Coles rival Woolworths Ltd (ASX:WOW) rose 2.4% and will report its annual earnings on Wednesday. 

Singapore’s Straits Times index fell 0.3%.

India’s Nifty 50 index fell 0.7% in morning trade, with local markets set for some headwinds this week as Trump’s August 27-28 deadline for 50% tariffs on New Delhi approaches.

Trump’s tariffs are aimed at curbing India’s purchases of Russian oil. But any disruptions in Indian oil supplies present dire headwinds for the South Asian economy, given its large dependence on oil imports.