Asia Stocks Slip on Japan GDP, Nvidia Uncertainty Looms

Asian stock markets edged lower on Monday, weighed down by disappointing Japanese GDP data and investor caution ahead of Nvidia’s upcoming earnings. Risk appetite remained subdued as traders also trimmed expectations for a potential Federal Reserve rate cut in December.

Japan Struggles Despite Better-Than-Expected GDP

Japan’s Nikkei 225 and TOPIX indices fell 0.6% each, after data revealed the economy shrank 1.8% in Q3, its steepest decline since mid-2024. While this was better than the projected 2.5% contraction, weak private consumption and falling exports—impacted by U.S. trade tariffs—hit growth. Strong capital expenditure provided partial support, helping limit the losses.

The GDP report cooled speculation about a Bank of Japan interest rate hike in December, although analysts note inflation pressures may keep a January hike on the table.

China-Japan Diplomatic Row Weighs on Markets

Tensions between Beijing and Tokyo further pressured markets. China warned citizens against traveling to Japan after Japanese PM Sanae Takaichi made remarks on Taiwan that drew sharp rebukes from Beijing. Chinese and Hong Kong markets fell, with Shanghai Composite down 0.6%, CSI 300 down 0.7%, and Hang Seng off 0.5%. Japanese tourism stocks bore the brunt of the fallout.

Nvidia Spotlight Keeps Tech Shares Cautious

Investors eyed Nvidia’s earnings report, expected to show continued AI-driven growth. Yet, caution persisted as billionaire investors including Peter Thiel and Michael Burry reduced their stakes, and Japan’s SoftBank exited its holdings. Tech shares across Asia showed signs of vulnerability amid these developments.

South Korea Shines Amid Semiconductor Demand

Contrasting the broader weakness, South Korea’s KOSPI rebounded 1.7%, boosted by strong export data and falling semiconductor inventories for SK Hynix and Samsung Electronics. The supply constraints are likely to push chip prices higher globally, while Samsung’s announcement of new domestic chipmaking investments provided further support.

Mixed Moves Across the Region

Other markets showed smaller swings: Australia’s ASX 200 fell 0.3%, Singapore’s Straits Times eased 0.1%, while India’s Nifty 50 gained 0.3%, approaching the 26,000-point mark. Meanwhile, U.S. futures saw modest gains, with S&P 500 up 0.4% and Nasdaq 100 surging 0.7% during Asian trading.

As Asian markets navigated economic headwinds, geopolitical tensions, and high-tech uncertainties, investors remain watchful for signals from corporate earnings and global central bank policy.