Asian stocks moved lower on Tuesday as optimism over U.S. interest rate cuts faded and caution built ahead of Nvidia’s highly anticipated earnings. Technology shares remained under pressure, while investors also reacted to fresh concerns over Federal Reserve independence after President Donald Trump abruptly fired Fed Governor Lisa Cook.
Wall Street’s overnight losses spilled into Asia, with S&P 500 futures dipping 0.1% in Asian hours after falling as much as 0.4% earlier. Commodity weakness also weighed on Australian markets, while Chinese and Japanese shares lost momentum near record highs.
China holds steady near multi-year highs
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite gained about 0.1%, keeping close to multi-year peaks. Hong Kong’s Hang Seng index slipped 0.2% after touching near a four-year high.
Chinese markets had surged through August on expectations of stronger policy support from Beijing, including measures to boost consumption and local industries. Tech stocks, especially chipmakers, benefited from China’s push for domestic semiconductor growth amid scrutiny of U.S. firm Nvidia.
A busy earnings week in Hong Kong added to market focus, with reports due from PetroChina, Ping An, Meituan, Trip.com, China Overseas, China Life, Haier Smart Home, CNOOC, Li Auto, Alibaba, and several major Chinese banks.
Japan and South Korea lead losses on tech weakness
Japan’s Nikkei 225 and TOPIX both dropped 0.9%, while South Korea’s KOSPI fell 1%. Tech shares led declines as investors trimmed positions before Nvidia’s earnings on Wednesday.
Nvidia suppliers and investors in Japan and Korea saw sharp losses. Advantest fell 1%, SoftBank dropped 2.5%, while Samsung Electronics and SK Hynix slid between 0.4% and 2%. Taiwan’s TSMC traded flat despite its strong links to Nvidia.
Nvidia’s results are viewed as a key gauge for AI and global tech demand. Any signs of weaker performance could deepen recent declines in the sector. The company is also expected to update investors on China sales, especially regarding its H20 chip under Beijing scrutiny.
Outside tech, Nissan tumbled 6% after Mercedes-Benz said it would sell its $346 million stake in the Japanese automaker.
Australia, India and Southeast Asia under pressure
Australia’s ASX 200 fell 0.6% as mining losses dragged the index down. Iron ore giant Fortescue Metals dropped 1.6% after weak annual earnings, while BHP and Rio Tinto also slipped. Gains in retailers offered some relief, with Coles soaring over 8% on a strong start to fiscal 2026, while Woolworths rose 2.4% ahead of its results.
Singapore’s Straits Times lost 0.3%, while India’s Nifty 50 dropped 0.7%. Indian markets face added risks from Trump’s August 27-28 deadline to impose 50% tariffs on Indian goods, a move linked to New Delhi’s Russian oil imports. The tariffs could disrupt oil supplies and put fresh pressure on India’s economy, which relies heavily on energy imports.
Overall, Asian markets faced a mix of global headwinds—fading Fed optimism, Nvidia-driven tech caution, and geopolitical trade risks—keeping risk appetite muted.
