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Nvidia's Blowout Earnings Offset by China Concerns, Shaking Asian Stocks
28 Aug
Summary
- Nvidia's strong earnings offset by worries over its China business
- Dollar remains weak as investors bet on near-term rate cut
- Asian chipmakers likely to feel the drag from Nvidia's performance
On August 28th, 2025, Asian stocks experienced a volatile trading session as the impact of Nvidia's strong earnings was offset by worries over the company's China business. MSCI's broadest index of Asia-Pacific shares outside Japan swung between gains and losses, ultimately closing 0.2% lower.
The mixed performance was driven by a decline in U.S. equity futures, which were dragged down by Nvidia's after-hours share price drop. Investors were concerned about the chip designer's China operations, which were caught up in the ongoing trade tensions between Washington and Beijing. Nvidia's management noted that it did not ship any H20 products to China during the quarter.
Amid the market uncertainty, the dollar remained on the defensive as traders ramped up bets on a near-term interest rate cut by the Federal Reserve. This came after Fed Chair Jerome Powell's recent dovish pivot and President Trump's moves to assert control over the central bank.
Analysts expect the impact of Nvidia's results to spill over to other Asian chipmakers, particularly in South Korea and Taiwan, as they are closely tied to the company's performance. The Nikkei 225 in Japan fluctuated between gains and losses, while Korean stocks advanced slightly after the Bank of Korea kept interest rates unchanged.
