Asian equities edged lower on Tuesday as investors awaited Nvidia’s quarterly earnings report, which is expected to reinforce the artificial intelligence rally amid broader caution. The chipmaker’s performance is seen as a bellwether for the AI ecosystem, influencing chipmakers and data center capacity providers.
Technology shares came under pressure after Alibaba launched a $10.2 billion share sale at a steep discount to fund its AI initiatives, while disappointment lingered over Samsung Electronics’ shareholder-return plan from the previous session. The selloff in Alibaba’s stock weighed on regional tech sentiment, compounding concerns over stretched valuations in the AI-driven rally.
Unitree, the humanoid robot maker, saw its shares largely flat after a sharp 45% decline from its Shanghai debut peak of more than fivefold. The drop has fueled concerns about retail investor losses, bubble risks, and potential flaws in the IPO process. The company’s valuation surge and subsequent correction have highlighted volatility in China’s tech listings.
Oil prices pared gains after U.S. sanctions on Iran fell short of the most severe measures, easing immediate supply disruption risks. The expanded sanctions, unveiled on Monday, target Iran’s economic lifelines while stopping short of a full embargo. Tehran vowed retaliation and expressed confidence that major trading partners would resist U.S. pressure, tempering market reactions.
In Europe, Germany’s GDP and Ifo business climate survey are due later on Tuesday, offering insight into the economic toll of prolonged high energy prices amid the Middle East conflict. The reopening of Germany’s 2-year and UK’s 7-year government bond auctions will also draw attention, alongside the U.S. Conference Board’s consumer confidence reading. Richmond Fed President Thomas Barkin is scheduled to speak, potentially providing further clues on monetary policy direction.
