Outlooks

Daily Market Update – Asia Stocks Fall on Weak Japan GDP, Nvidia Earnings Fears, and Rising Global Risk-Off Mood

Asian markets traded sharply lower today as Japan’s GDP contracted more than expected, diplomatic tensions between China and Japan escalated, and investors grew increasingly cautious ahead of Nvidia’s much-anticipated earnings. Weak risk sentiment spread across global markets, pressuring equities, supporting safe-haven flows into gold, and pushing cryptocurrencies lower. Additional volatility came from billionaire Peter Thiel’s complete exit from Nvidia and a broad reassessment of AI-linked valuations.

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author: Economician

153

published:Nov 17, 2025 3:11

category:daily

Asia Markets – Sharp Declines Amid Japan GDP Shock & Nvidia Anxiety

Asian equities opened the week on a weak footing after Japan’s 3Q GDP contracted 1.8%, marking its worst performance since mid-2024. Although the contraction was milder than the expected 2.5% decline, it stemmed from weak consumption and falling exports, hit by higher U.S. tariffs.

Nikkei 225: –0.6%
TOPIX: –0.6%

Stronger capital expenditure softened the blow, while the weaker GDP reading reduced expectations of a Bank of Japan rate hike in December, helping limit losses.

But analysts at Capital Economics emphasized that sticky inflation and relatively firm growth still keep the possibility of a January rate hike alive.

China & Japan Tensions Add Pressure

A growing diplomatic rift between Beijing and Tokyo deepened market concerns:

CSI 300: –0.7%
Shanghai Composite: –0.6%
Hang Seng: –0.5%

China warned citizens against traveling to Japan after comments from Japanese PM Sanae Takaichi regarding Taiwan and potential military involvement.

This led to double-digit losses in Japanese tourism names including Ryohin Keikaku, Isetan Mitsukoshi, and Shiseido.

Nvidia Earnings in Focus – Tech Sentiment Fragile

Asian tech shares followed Wall Street lower as investors braced for Nvidia’s earnings:

Nvidia expected to post 53.8% YoY earnings growth, but the bar is high.
Concerns intensified after Peter Thiel fully exited his $100M Nvidia position.
Michael Burry also revealed short positions on Nvidia and Palantir.
SoftBank recently exited its Nvidia stake as well.

The fear of an AI-driven bubble weighed heavily, especially after reports of OpenAI’s massive long-term spending needs.

South Korea Outperforms – Semiconductors Rebound

South Korea’s KOSPI surged 1.7%, sharply outperforming the region.

The rally was powered by:

SK Hynix & Samsung jumping on news of sharply lower chip inventories, signaling stronger demand.
Expectations of rising global chip prices.
Steady export growth and declining imports in October.

Samsung also rallied after pledging new investments in domestic chipmaking infrastructure.

Other Asia Markets

ASX 200: –0.3%
Straits Times (Singapore): –0.1%
Nifty 50 (India): +0.3% — nearing the 26,000 level

What Happened Overnight & Market Summary

💱 FX / Currencies

The U.S. Dollar held modestly, supported by risk-off sentiment but pressured by Fed officials’ hawkish remarks, which reduced expectations of a December rate cut.

🪙 Crypto

Cryptocurrencies saw no clear direction.

Bitcoin briefly dropped nearly 2% to $93,684, before rebounding back toward $95,000.

Weak risk appetite and fading momentum in growth sectors weighed on the space.

🛢 Commodities

Gold ticked higher on safe-haven inflows.
Oil attempted a mild rebound, supported by supply concerns despite a weaker demand outlook.

📉 Indices

Global equity markets recorded steep declines, marking some of the biggest weekly losses in November so far, as sentiment deteriorated across both U.S. and Asian markets.