HK, region mixed as Nvidia faces crunch on Huang sack

Asian markets faced a mixed start to trading on Thursday, with Nvidia shares taking a significant hit after reports surfaced that its board may oust co-founder and CEO Jensen Huang. In Hong Kong, the Hang Seng Index opened 194 points, or 0.8%, lower at 24,121, while the tech-focused index dropped 32 points, or 0.8%, to 3,995. On the mainland, the Shanghai Composite Index fell 7 points, or 0.21%, to begin at 3,673.

The Shenzhen Component Index was down 28 points, or 0.25%, at 11,361, and the ChiNext Index slipped 0.5% to 2,559.

The controversy surrounding Huang centers around allegations that he had an affair with a suspected Chinese spy and a company executive who reported to him. These claims have raised concerns about the stability of Nvidia, the world's leading supplier of AI processors. Jake Dollarhide, CEO of Longbow Asset Management, expressed skepticism about the board's ability to find a suitable replacement for Huang, stating, "I believe the board won't oust him until they have an all-star, a known entity in the tech sector, to replace him."

Nvidia's shares plummeted over eight percent after the market closed, impacting S&P 500 e-mini futures, which fell 0.4%. In contrast, Tokyo's Nikkei Index opened 226 points, or 0.37%, higher at 61,475 and briefly reached a high of 61,851 before lunch. Seoul's Kospi Index started the day at 5,385, rising 10 points, or 0.2%, before recovering slightly to 5,415. The positive sentiment around AI, driven by developments at CoreWeave and Anthropic, contributed to the revitalization of US equities overnight.