Asian Stocks Fall as Investors Eye Nvidia Earnings and Rising Bond Yields

Global investors began the week cautiously as Asian markets opened mostly lower, led by declines in technology shares. In Hong Kong, Alibaba's stock dropped about 8% after raising HK$80 billion at an 8.4% discount, while Samsung shares fell 7.5% in Seoul due to disappointing buyback details. SoftBank also declined 3.8% in Tokyo following a record bond issuance. Meanwhile, U.S. futures on Wall Street remained stable after a negative week driven by a surge in long-term government bond yields, with the 30-year U.S. Treasury yield surpassing 5.3%, levels unseen in nearly two decades. Similar yield increases were noted in Japan, France, and Germany.

This week’s market focus includes the U.S. Personal Consumption Expenditures (PCE) inflation data, the Jackson Hole symposium where Federal Reserve Chair Kevin Warsh will speak for the first time, and earnings reports from Nvidia and Marvell Technology, which are seen as key tests for the ongoing AI-driven rally. Additionally, U.S. Treasury Secretary Scott Bessent is expected to announce new sanctions against Iran, described as the "largest economic isolation in world history," amid escalating U.S.-Canada trade tensions and concerns over prolonged U.S.-Iran conflict that could keep oil prices high and inflationary pressures elevated.

In currency and commodities markets, the U.S. dollar weakened to its lowest level since May, supported by U.S. Treasury bond purchases and a weaker yen. Bitcoin surged 23% last week, reaching around $76,000, partly fueled by former President Trump’s call for clearer crypto regulations. Gold prices also rose 5.6% amid the dollar’s decline. Investor Ray Dalio advised reducing bond holdings and allocating up to 15% of assets to gold as a hedge against a potential U.S. debt crisis within two to three years.

In Tel Aviv, investors hope for a better week after last week's stagnation, though regional security tensions and stalled U.S.-Iran negotiations continue to weigh on sentiment. Israeli dual-listed stocks mirrored Wall Street’s chip sector declines, with Kamtek and Nova down over 3% and Tower Semiconductor falling about 1.5%. Upcoming earnings from Navitas Petroleum, Fox, Terminal X, and insurance firms Phoenix, Menora, and Harel are expected to influence local market direction.

Market strategists warn that the sharp rise in U.S. government bond yields could trigger a significant stock market correction. Philip Colmar of MRB Partners cautioned that if long-term yields continue climbing, the S&P 500 could drop 15% to 20%, as investors engage in risk reduction. He noted that Treasury interventions might backfire by pushing yields even higher, reflecting persistent inflation concerns and market panic.

Overall, investors worldwide remain watchful of inflation data, central bank signals, geopolitical risks, and corporate earnings as key factors shaping market trends this week.