Asian shares slip as tech stocks weigh ahead of key Nvidia results

Analysts are generally looking for quarterly revenue to almost double to around $92 billion, with full-year earnings guidance seen in a range of $103 billion to $105 billion | Image: Bloomberg

Asia shares slipped on Tuesday while oil prices extended losses, after threats from the US for an "economic D-Day" of sanctions on Iran turned out to be a damp squib.

US Treasury yields were off their recent highs following ​a report that the Treasury Department might tap into its cash account to finance increased debt ​buybacks, which could reduce the need for additional sales of short-term bills.

The tech sector is holding its breath for Nvidia's results ‌on Wednesday; investors are aware how hard it will be for the chipmaker to meet lofty expectations.

Analysts are generally looking for quarterly revenue to almost double to around $92 billion, with full-year earnings guidance seen in a range of $103 billion to $105 billion.

"Those are really high expectations to be met," said Fabien Yip, a market analyst at IG.

"Judging from Nvidia's track record, it won't be surprising if they meet the headline numbers, but I think the more piece is people are trying to understand whether there are concerns on the circular deals powering its growth and whether that growth percentage is sustainable in the upcoming quarters."

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.5 per cent, while Japan's Nikkei lost 0.9 per cent and South Korea's Kospi slid 2.7 per cent.

Also weighing on tech sentiment was Alibaba's launch of a $10.2 billion share sale at a steep discount to fund its AI ambitions as well as disappointment over Samsung Electronics' shareholder-return plan.

Nasdaq futures were off 0.08 per cent while S&P ‌500 futures were flat. EUROSTOXX 50 futures edged 0.05 per cent lower.

On Monday, the Trump administration warned countries to cut their business ties with Iran or face secondary sanctions as part of what it billed as an "economic D-Day," though the Treasury Department stopped short of imposing any penalties.

Oil prices fell in the wake of the announcement and were little changed on Tuesday, with Brent crude futures down 0.1 per cent to $92.08 a barrel. US crude edged 0.1 per cent higher to $85.09 per barrel; both measures fell more than 2 per cent overnight.

"We do not expect China - Iran's largest trade partner - to bow to US pressure to cease commerce with Iran," said Joseph Capurso, a strategist at the Commonwealth Bank of Australia.

"The US' campaign against Iran puts ​at risk the trade truce between the US and China ahead of the leaders meeting next month."