MANILA, Philippines (AP) — Asian shares were mostly higher on Thursday after a mixed finish on Wall Street, where shares in Nvidia, Palantir and other superstar stocks pared their earlier steep losses.
Traders are looking ahead for cues about U.S. monetary policy from a meeting of central bankers that begins later in the day in Jackson Hole, Wyoming. Federal Reserve chair Jerome Powell is due to speak to the conference on Friday.
The Fed has kept its main interest rate steady this year, primarily because of the fear of the possibility that President could push higher. But a on job growth across the U.S. may be superseding that.
Still, from the Fed’s July 29-30 meeting showed most Fed officials felt the threat of higher inflation was a than the potential for job losses, leading the central bank to keep its key rate unchanged.
In Tokyo, the Nikkei 225 fell 0.6% to 42,636.74 after a survey showed Japan’s factory activity remained in contraction for the second month in August. The S&P Global flash Japan Manufacturing Purchasing Managers’ Index (PMI) increased to 49.9 in August from 48.9 in July, just below the 50 level that delineates between growth and decline.
Regional manufacturers have been feeling pressure from Trump’s higher tariffs on exports to the United States.
In Chinese markets, Hong Kong’s Hang Seng index edged 0.1% lower to 25,135.09, while the Shanghai composite index rose 0.4% to 3,779.52.
South Korea’s Kospi jumped 1% to 3,161.74, while Australia’s S&P ASX 200 index added 1% to 9,005.00.
Taiwan’s TAIEX climbed 1.2%, while India’s Sensex added 0.1%.
“Asian markets walked into Thursday like a card room still heavy with last night’s smoke — muted, watchful, waiting for the next cue out of Jackson Hole,” Stephen Innes of SPI Asset Management said in a commentary.
On Wednesday, the S&P 500 dipped 0.2% to 6,395.78 after trimming a 1.1% loss earlier in the day. It is still near its set last week.
The Dow Jones Industrial Average added less than 0.1% to 44,938.31. The Nasdaq composite fell 0.7% to 21,172.86.
The day’s action centered again around stocks caught up in the mania around .
Nvidia, whose chips are powering much of the world’s move into AI, sank as much as 3.9% during the morning and was on track to be the heaviest weight on Wall Street following its 3.5% fall on Tuesday.
But it clawed back nearly all of Wednesday’s drop and finished with a dip of just 0.1%. As it pared its loss, so did broad market indexes because Nvidia is Wall Street’s most influential stock by being its most valuable.
Palantir Technologies, another AI darling, fell 1.1% to add to its 9.4% loss from the day before, but it had been down as much as 9.8% Wednesday morning.
One possible contributor to the swoon was a study from MIT’s Nanda Initiative that warned that most corporations are not yet seeing any measurable return from their generative AI investments, according to Ulrike Hoffmann-Burchardi, global head of equities at UBS Global Wealth Management.
But the larger factor may be the simple criticism that prices for such stock have simply shot too high, too fast amid the furor around AI and became too expensive.
In other dealings early Thursday, US. benchmark crude gained 30 cents to $63.01 per barrel. Brent crude, the international standard added 26 cents to $67.10 per barrel.
The U.S. dollar rose to 147.37 Japanese yen, from 147.29 yen. The euro slid to $1.1648 from $1.1659.
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AP Business Writer Stan Choe contributed.
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