Asia Markets Trade Cautiously after U.S. Giants Miss 4Q18 Revenue Expectation

Asia markets traded lower following the plummet from the U.S. overnight weaker-than-expected quarterly earnings and guidance from Caterpillar and revenue cut from chipmaker Nvidia, which caused Dow Jones to dropped 208.98 points or 0.84%, S&P 500 dipped 0.78%, and NASDAQ slid 1.11%.

At 9:00 on January 29, 2019, in Thailand, NIKKEI plunged 1.13%, SSEC skidded 0.25%, HSI slipped 0.64%, ASX 200 fell 0.68% and KOSPI lost 0.58%.

Caterpillar shares fell 9.1% after the industrial giant posted weaker-than-expected earnings for the fourth quarter. Meanwhile, Nvidia, dropped 13.8% after slashing its fourth-quarter revenue guidance to $2.2 billion from $2.7 billion.

 

Investors also traded cautiously, while waiting to see how the meeting between the U.S. and Chinese delegation led by Chinese VP Liu He will turn out. The trade talk will kick off this Wednesday, which will be a higher-level negotiation this time, showings that China would want to find a truce in this trade war within the time frame given by the U.S. to be before March 1.

There are three scenarios of how this meeting would turn out.

Later in the day, Sky News reported that British Prime Minister Theresa May told Conservative lawmakers on Monday that she planned to hold a vote in parliament on her Brexit deal on Feb. 13.