Investing.com - APAC shares opened in a mixed fashion on Wednesday, after technology stocks in the US faced declines overnight, with Microsoft tanking in after-hours trading.
As of 11:00 am AEST (1:00 am GMT) S&P/ASX 200 and KOSPI 200 added 0.6% and 0.4% respectively, while the Nikkei 225 dipped 0.8%.
In the US, tech stocks continued their recent downward trend on Tuesday, reflecting a rotation away from previously dominant sectors. The Nasdaq Composite dropped by 1.3%, and the S&P 500 declined by 0.5%. Nvidia saw a significant drop of 7%, Microsoft (NASDAQ:MSFT) fell 0.9%, and Amazon (NASDAQ:AMZN) declined by 0.8%.
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After-hours trading saw Microsoft Corporation (NASDAQ:MSFT) plunge 7%, despite the company reporting $2.95 in diluted earnings per share for the three-month period ending June 30—ahead of the forecasted $2.94. Quarterly sales also beat estimates, coming in at $64.7 billion, up 15% year-over-year.
The Dow Jones Industrial Average rose by 0.5% and the Russell 2000 small-cap index added 0.3%, outpacing indices heavily weighted with tech stocks.
Investor attention remains focused on upcoming earnings reports from major tech companies, including Meta Platforms Inc (NASDAQ:META) on Wednesday, followed by Amazon and Apple (NASDAQ:AAPL) on Thursday. The tech sector saw declines last week after disappointing results from Tesla (NASDAQ:TSLA) and Alphabet (NASDAQ:GOOGL).
Market participants are also closely watching the Federal Reserve's meeting this week, expecting the central bank to keep interest rates steady. The Fed’s policy statement and Chair Jerome Powell's news conference will be scrutinized for insights into future rate decisions. The monthly jobs report on Friday will provide a new perspective on labor market health, potentially influencing the Fed’s outlook.
Earnings reports drove significant price movements in individual stocks during Tuesday's regular session:
PayPal (NASDAQ:PYPL) surged by 8.6% after the company beat expectations and raised its annual earnings guidance.
Stanley Black & Decker (NYSE:SWK) jumped by 10% following an improved earnings outlook for the year.
Merck & Company Inc (NYSE:MRK) fell by 9.8% after lowering its earnings forecast for the year.
Procter & Gamble Company (NYSE:PG) dropped by 4.8% following lower-than-expected sales.
In commodities, Brent crude oil fell by 0.8% to $79.13 a barrel, and gold remained flat at $2,410.65.
Chinese stocks closed lower due to weak sentiment following the July Politburo meeting, which promised policy support but lacked specifics. The Shanghai Composite Index fell by 0.4% to 2,879.30, the Shenzhen Composite Index declined by 0.2%, and the ChiNext Price Index dropped by 0.3%. Oil stocks weighed down the market, with Cnooc falling by 5.2% and PetroChina by 3.9%. Meanwhile, WuXi AppTec rose by 4.3% after maintaining its 2024 sales target. Property stocks gained, with China Vanke up by 0.9% and Poly Developments & Holdings by 1.8%
Hong Kong shares also ended lower, with the Hang Seng Index declining by 1.4% to 17,002.91. Investors are digesting the recent Politburo meeting's acknowledgment of growing economic challenges while affirming growth targets. Hang Lung Properties dropped by 12% after reporting a lower first-half profit. Xiaomi fell by 3.0%, and BYD by 2.85%. Standard Chartered (LON:STAN) surged by 4.9% after reporting Q2 results and announcing a $1.5 billion share buyback. Samsonite International added 5.0%, and NetEase (NASDAQ:NTES) rose by 1.3%.
Japan's Nikkei Stock Average edged up by 0.15% to 38,525.95, recovering earlier losses likely due to position adjustments ahead of the Bank of Japan's decision on Wednesday. Market participants are focused on potential measures to reduce JGB purchases. Among the best performers on the Nikkei, Chugai Pharmaceutical rose by 3.3%, OMRON Corp. by 3.0%, and Fanuc by 2.9% after raising FY revenue and net profit guidance. The 10-year JGB yield decreased by 3 basis points to 0.995%.
Indian shares inched higher, with the Sensex rising by 0.1% to 81,455.40. Investors are awaiting the Federal Reserve's rate decision and the earnings reports from U.S. tech giants later this week. Utility stocks advanced, with NTPC up by 3.3% and Power Grid Corp. of India by 2.1%. ICICI Bank fell by 0.3%, ITC by 1.2%, and Mahindra & Mahindra Ltd. by 0.5%.
U.K. stocks dipped, with the FTSE 100 Index down by 0.2% to 8,274.41. Oxford Nanopore Technologies PLC saw the largest decline, falling by 6.3%, followed by Ocado (LON:OCDO) Group PLC, which dropped by 6.0%, and ConvaTec Group PLC, which declined by 5.8%. St. James's Place PLC surged by 25% to become the biggest gainer, followed by Standard Chartered PLC, which rose by 5.9%, and Greggs (LON:GRG) PLC, up by 5.0%.
Elsewhere in Europe, markets closed higher. The STOXX Europe 600 Index increased by 0.5% to 514.08, Germany's DAX added 0.5% to 18,411.18, and France's CAC 40 rose by 0.4% to 7,474.94.