Asian stock markets mostly declined at the close of trading on Thursday, 12 November, as investors watched the fallout from reports of turmoil at Nvidia, rising world oil prices and a surge in US government bond yields. The Hang Seng Index closed at 24,008, down 1.26 percent, while Japan’s Nikkei 225 fell 0.70 percent to 60,819.
Nvidia shares slide
Nvidia shares fell 4.3 percent, and the company’s market value briefly dipped below $4 trillion. Reports said Jensen Huang, the company’s chief executive, had been ousted from his position. Shares of Broadcom and Advanced Micro Devices rose more than 5 percent.
Mike Pyle, deputy head of the portfolio management group at BlackRock, said competition would become more differentiated. “Players with stronger balance sheets and a greater focus on building community engagement are likely to be winners in the next phase of build-out,” he said.
Oil and bonds lift pressure
Brent crude rose more than 3 percent, to about $95.70 a barrel, after US President Donald Trump said the United States could choose not to reach an agreement with Iran. That would dim hopes of resolving a conflict that has disrupted energy supply from the Middle East.
US two-year Treasury yields rose 14 basis points and 10-year yields rose 13 basis points. Gennadiy Goldberg, head of US interest rate strategy at TD Securities, said investors continued to price in the possibility of further rate hikes. Markets are also weighing a more aggressive Federal Reserve as it tries to control inflation.
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Yen and the week ahead
The yen weakened to 160 per dollar, its first time at that level since September. Win Thin, chief economist at Bank of Nassau 1982, said markets grow nervous about possible foreign exchange intervention whenever the rate approaches 160.
Attention now turns to an Anthropic initial public offering, a planned loan of at least $4 billion by CoreWeave, and Nvidia’s financial results, which are expected to be closely watched.
Related: Nvidia slides 4.3% on reported CEO exit as US stocks close lower · Nvidia slides after hours on CEO reports; Asian shares mixed
