Global market update: APAC shares dip, strong PMIs weigh on US indices

Investing.com - Share markets in the Asia-Pacific region traded lower on Friday, following a decline in US indices, despite Nvidia's robust earnings results that led to a surge of over 9% in its stock.

The S&P/ASX 200, KOSPI 200, and Nikkei 225 fell between 0.9% and 1.4% by 11:00 am AEST (1:00 am GMT) as robust economic data from the US led to expectations of the Federal Reserve maintaining higher interest rates for an extended period.

During Thursday's session, the Dow Jones Industrial Average plummeted by 605 points or 1.5% to 39065, while the S&P 500 and the NASDAQ Composite dropped 0.7% and 0.4% to 5267 and 16736 respectively.

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Though weekly jobless claims were lower than anticipated, the S&P Global Flash US Composite PMI reached a 25-month high in May, marking the first time since January that the index hasn't slowed.

Investors had been keenly awaiting earnings results from NVIDIA Corporation (NASDAQ:NVDA) due to its significant weight in benchmark indexes like the S&P 500. Despite the chip manufacturer reporting record quarterly revenue and profits that surpassed Wall Street's expectations, major indices failed to rise.

In recent months, investors have been adjusting their expectations on inflation and the Federal Reserve's potential interest rate cuts. Despite a series of higher-than-expected inflation reports, more recent encouraging data has kept hopes alive for rate cuts in 2024.

Shares of Boeing Co (NYSE:BA) and Comerica Inc (NYSE:CMA) suffered losses, while Live Nation Entertainment Inc (NYSE:LYV) shares declined after the Justice Department filed a lawsuit to break up the largest concert promotion and ticketing company in the US.

In the commodities market, Brent crude oil fell by 0.5% to US$81.48 a barrel, and gold prices dropped by 2.1% to US$2,329.27.

Chinese shares closed lower, affected by property and energy stocks, while Hong Kong shares also ended the day lower, pressured by major tech stocks.

Japanese stocks ended the day on a positive note, buoyed by gains in chip and tech stocks following Nvidia's robust earnings report. Indian shares also closed higher, led by tech and bank stocks.

UK stocks slipped on Thursday, with the FTSE 100 Index declining by 0.4% to 8339.23. In contrast, European shares managed to close slightly higher, with marginal gains in the STOXX Europe 600 Index, Germany's DAX, and France's CAC 40.

This article first appeared in Investing.com