Buckle up or just hunker down for a bit

Regarding Nvidia's much-hyped second-quarter results on Wednesday, it's clear that the numbers alone aren't pushing investors off the cliff—but keep an eye on the U.S. economy, which just might. As Asian markets brace for Thursday’s open, it's safe to say they’ll be starting on the back foot.

The AI juggernaut delivered some stellar figures, but let’s be real—it didn’t exactly knock socks off. Investors have become spoiled, expecting Nvidia not just to meet but obliterate expectations.

From a 10,000-foot view, the issue isn’t about balance sheets; it’s about sky-high expectations that are nearly impossible to meet.

Nvidia is likely to cast a shadow over Asian tech stocks as they wake up, but let’s be honest—once everyone realizes AI stocks aren’t about to plummet to earth, savvy players will likely be itching to buy the dip, especially with vol control funds still on the prowl.

But hold onto your hats—Thursday's baton handoff in Asia will be anything but graceful, with the Nasdaq taking a 1% hit and chip stocks down 1.8%, all while the U.S. dollar and bond yields tick higher. The yen, however, seems to be digging in its heels, opening below 144.40 into the Tokyo fix after briefly flirting with 145 overnight.

As for China, it’s all gloom and doom. The Shanghai Composite is down 11% since May, while the S&P 500 has managed a 6% climb in the same period, despite a few wobbles. The contrast is as clear as day—sentiment is driving this divide, and right now, the mood in China couldn’t be more sour.