Global Markets React to Earnings Reports and Economic Data

Asia-Pacific markets traded mixed on Thursday as investors reacted to the Bank of Korea's decision to keep interest rates unchanged. The South Korean central bank maintained its policy rate at 2.5% for the second consecutive meeting, in line with economists' expectations. India's markets were closed on Wednesday due to a holiday, but are expected to be impacted by the implementation of U.S. tariffs on Indian shipments. Other market movers included Australian rare earths producer Lynas Rare Earths, which plans to raise $488 million through a share sale, and Qantas, whose shares rose to a record high after the airline reported better-than-expected earnings.

European stock markets are expected to open higher on Thursday following Nvidia's quarterly earnings report, which exceeded expectations with revenue of $46.74 billion and sales growth above 50%. However, Nvidia's shares fell in after-hours trading due to concerns over data center revenue and China sales. Other European news includes Pernod Ricard's 3% decline in sales and a 7.4% annual increase in EU new car registrations, with a significant rise in battery-electric vehicles. Chinese EV-maker BYD saw a 290.6% increase in new registrations, while Tesla's registrations declined by 33.6%. The article also mentions upcoming EU consumer and economic sentiment figures and inflation prints from several European countries.

Qantas shares surged to a record high after the airline reported a 15% jump in underlying profit before tax to A$2.39 billion, beating estimates. The carrier's revenue rose 8.6% to A$23.82 billion for the year ended June 30. Qantas' budget arm, Jetstar, had a "standout year" with a 55% jump in annual earnings. The airline also announced a final dividend and special payout, bringing total ordinary dividends to 33 cents a share, its biggest annual payout in 17 years. Qantas has placed an order for 20 more Airbus A321XLR aircraft, signaling a push toward premium narrow-body capacity.

Tesla's European sales plummeted 40% in July, marking their seventh consecutive month of decline, while Chinese rival BYD saw a 225% surge in new registrations. Tesla faces challenges in Europe, including intense competition and reputational damage due to Elon Musk's controversial statements and association with the Trump administration. The company's lack of a major refresh in its car lineup has contributed to its struggles. Meanwhile, Chinese brands, led by BYD, are aggressively expanding into Europe with competitively priced models. Other automakers, such as Jeep and Hyundai, also saw declines in European new car registrations, while Volkswagen, BMW, and Renault reported increases.

Nvidia's stock declined over 5% in after-hours trading on Thursday despite the company reporting robust quarterly financial results. The decline was attributed to challenges and uncertainties in the China market, where revenues dropped 24% to $2.8 billion. Nvidia faced regulatory pressure from both the US and China, particularly regarding its H20 chips designed for the Chinese market. The company did not sell any H20 chips in the quarter and has not resumed shipments due to unclear US export control requirements and Chinese government concerns about potential vulnerabilities in the products.