(URGENT) Seoul stocks end higher ahead of Nvidia earnings

Asian stocks experienced a general decline on Tuesday, fueled by heightened concerns surrounding technology shares and geopolitical tensions. The MSCI AC Asia Pacific equity gauge dropped by around 0.5%. U.S. equity futures showed relative stability in Asia, with the Nasdaq 100 Futures up by 0.3% and S&P 500 Futures gaining 0.1%, following Wall Street's lower close on Monday.

This development came as investors evaluated fresh selling in U.S. semiconductor stocks preceding Nvidia's earnings report on Wednesday. Anticipated revenue of approximately $92 billion from the company is seen as a crucial test for the AI-driven rally to meet increasing market expectations.

The apprehensive atmosphere was further amplified after the Trump administration proposed expanding secondary sanctions on nations engaging in business with Tehran, as part of its "economic D-Day" strategy. Although the announced measures were not as severe as initially feared, they contributed to the risk-averse sentiment. Consequently, oil prices experienced a slight decline, with Brent trading around $92 a barrel.

South Korea's KOSPI recovered from a more substantial early dip, trading 1.3% lower. SK Hynix and Samsung Electronics both witnessed declines of 3.5% and 1.8%, respectively. This downward trend followed a significant recovery in Korean technology stocks. Samsung also faced additional pressure due to its announced shareholder-return package, which failed to impress investors. Meanwhile, Nvidia's upcoming earnings results loom as the next key catalyst for the semiconductor sector.

Japan demonstrated relative resilience, with the Nikkei gaining 0.2% and TOPIX increasing by 0.3%. However, chip-related companies exhibited mixed performance; Kioxia rose by 0.7%, Sony increased by 0.4%, while LARGAN Precision dropped by 1.6%, TDK fell by 0.2%, and Murata Manufacturing decreased by 0.1%. The overall technology sector continues to be susceptible to higher borrowing costs and concerns that the massive investments in AI infrastructure may take longer to generate earnings and cash flow.

Moreover, political resistance is gaining momentum as Texas Governor Greg Abbott criticized data-center developers, ordering a halt on approvals for new projects in the state's grid interconnection process, citing worries over electricity demand and grid reliability.

Australia's S&P/ASX 200 rose by 0.6%. Coles (ASX:COL) gained approximately 2.3% following a stronger-than-expected FY2026 result. Energy companies have also benefited from the turmoil caused by the Middle East conflict. Woodside Energy reported a 7% increase in first-half profit, but shares dropped by 1% after the company abandoned its $5 billion clean-energy investment target and shifted its focus towards oil and gas.

Ampol extended its gains by 0.8% after a sharp earnings surge on Monday, with shares reaching their highest level since April 2024 following the positive result.

India's Nifty 50 experienced a decline of 0.3%, while Singapore's FTSE Straits Times Singapore gained 0.3%. China and Hong Kong weakened, with the Shanghai Shenzhen CSI 300 falling by 0.5%, the Shanghai Composite down by 0.14%, and the Hang Seng losing 0.3%. Indonesia and Malaysia were closed for the Prophet Muhammad's Birthday, with both markets scheduled to resume trading on Wednesday.

Market participants are also closely monitoring the upcoming U.S. Personal Consumption Expenditures (PCE) inflation report, the Federal Reserve's preferred inflation measure, expected on Wednesday. Traders are currently anticipating a single 25-basis-point Federal Reserve hike by the end of 2026.