Hong Kong stocks slide before Nvidia earnings test as JD.com, Anta buy-backs limit losses
Nvidia will report its earnings in New York later Wednesday in a test for global AI-driven rally, tech valuations
The Hang Seng Index dropped 0.9 per cent to 17,692.45 on Wednesday. The Tech Index tumbled 1.6 per cent, while the Shanghai Composite Index declined 0.6 per cent.
Baidu fell 3.2 per cent to HK$81.90, NetEase dropped 2.5 per cent to HK$128.30 while Alibaba Group Holding declined 1.1 per cent to HK$79.05. Nongfu Spring slumped 10.4 per cent to HK$27.05 after earnings in the first half grew by the slowest since its listing in 2020.
Nvidia, the world’s largest artificial intelligence and computing firm, will issue its report card in New York on Wednesday. Investors will look for signs if the stock’s 160 per cent rally this year – and about 1,000 per cent from its low in October 2022, according to Bloomberg data – is justified.
Earnings reports are expected to dictate the short-term trend of the stock market, said Kenny Ng, a strategist at Everbright Securities. Banks, which have a large sector weighting in the benchmark index, will be pivotal in setting the direction in the local market, he added.
