From Financial Modeling Prep: 2025-02-25 02:04:03

Asian stock markets saw a sharp decline on Tuesday due to a selloff in tech shares and concerns over U.S. export controls on chip technology to China. Hong Kong’s Hang Seng Index dropped 2%, while Japan’s Nikkei 225 fell 0.9% with chipmakers leading the decline. Taiwan Weighted Index was down 1.4% due to selling pressure on Nvidia supplier TSMC, while South Korea’s KOSPI was supported by interest rate cuts by the Bank of Korea.

Investors are cautious ahead of Nvidia’s earnings report, which will provide insights into AI demand and semiconductor trends. Reports of stricter U.S. export controls on chip technology to China and renewed trade tensions between the U.S. and China have added uncertainty to the sector. Profit-taking in tech stocks has also been observed after a strong rally driven by AI.

Tech stocks are highly sensitive to Nvidia’s earnings, which could impact broader market sentiment. Investors can analyze historical earnings trends and sector performance to gauge valuation risks. With ongoing trade tensions and regulatory risks, tech investors are approaching the week with caution, especially in the AI and semiconductor sectors.



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