Asian stocks came under pressure on Thursday as reports about Nvidia's leadership unsettled the AI trade. Chinese chipmakers moved higher as U.S. scrutiny of the sector fed expectations of more domestic chip self-reliance.
Reports that Nvidia's board is discussing whether to replace Chief Executive Jensen Huang pushed the company's shares down more than 8% in after-hours trading, after a drop of as much as 10%. The MSCI Asia Pacific Index still rose 0.3%, led by technology shares, even as Nasdaq 100 futures fell 1% and S&P 500 futures lost 0.4%.
Wall Street had rallied a day earlier. The Nasdaq 100 jumped 2.3% and the S&P 500 gained 1.3%, leaving the S&P 500 close to recovering its losses since last week's U.S. midterm elections.
Nvidia reports put AI leadership risk back in focus
Directors were reportedly meeting on Wednesday to consider Huang's future, and the company has been working with an outside firm to identify potential successors. The reports follow allegations of multiple extramarital affairs. Huang acknowledged being unfaithful to his wife but gave no further details.
Nvidia's board has opened an investigation and said it had no reason to believe company secrets or U.S. national security had been compromised. The allegations and succession reports remain unverified, and Nvidia is due to report earnings next week.
China chipmakers gain as self-reliance bets strengthen
Chinese semiconductor shares moved higher. Shanghai-listed shares of Semiconductor Manufacturing International Corp. rose 2.4%, Hua Hong Semiconductor advanced 2.7% and chip equipment maker NAURA Technology climbed 3.1%.
Elsewhere in the region, Japan's Nikkei 225 slipped 0.8% and South Korea's KOSPI fell 0.3%. Mainland Chinese markets were mixed, with the Shanghai Composite gaining 0.2%.
The dollar held near an 18-month high. Fed funds futures indicated an 87.3% chance of a quarter-point increase at the December 9 meeting, against a 12.7% probability of a half-point rate hike.
Source: Investing.com
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