NVIDIA Fears Spark Sell-Off Fears for Asian Stocks, Bitcoin Ahead of CPI

Asian Markets Brace for US Inflation Data Amidst Cautious Optimism

Asian stocks staged a notable recovery this morning, but the upcoming US inflation report could put this rebound to the test. Investors are keenly awaiting October’s Consumer Price Index (CPI) figures, with expectations of moderating monthly inflation offering a glimmer of relief. However, persistent bets on further Federal Reserve rate hikes and a lawsuit against NVIDIA CEO Jensen Huang have cast a shadow of caution over the markets.

South Korea’s KOSPI index surged 4.5% in early trading, buoyed by strong performances from tech giants Samsung Electronics and SK Hynix. Hong Kong’s Hang Seng Index also saw gains, while Singapore’s Straits Times Index joined the regional upturn. Meanwhile, Bitcoin is trading below $75,000 as the market anticipates the US inflation release.

The key question remains whether the current recovery possesses enough momentum to withstand another inflation surprise. A hotter-than-expected reading could reignite concerns about borrowing costs, whereas softer inflation might provide risk assets with more room to rebound. The latest CPI figures are poised to determine if the current rally continues or if it triggers a sell-off.

Key Inflation Data and Market Expectations

The US Bureau of Labor Statistics is scheduled to release the October CPI data at 8:30 a.m. ET on November 10. Economists forecast that headline inflation will rise by 0.3% month-over-month, a slowdown from September’s 0.6% increase. Core CPI, which excludes volatile food and energy prices, is projected to climb 0.2%, down from 0.3% in the previous month.

Last year, a government shutdown prevented the BLS from collecting the necessary October 2025 data. However, economists had estimated that headline inflation would have reached 3.9% on an annual basis.

The stakes are particularly high as markets have increasingly factored in the possibility of another Federal Reserve rate hike. Following robust employment data, traders have assigned an 84% to 85% probability to a December increase. The Fed’s current benchmark interest rate stands between 3.75% and 4%.

Potential Impact on Asian Equities

A CPI reading that exceeds expectations could bolster the case for tighter monetary policy. This scenario would likely lead to higher Treasury yields and a stronger dollar, potentially pressuring Asian equities, especially technology companies whose valuations are sensitive to financing costs.

South Korea’s KOSPI index appears particularly exposed. Samsung Electronics and SK Hynix, integral to the global semiconductor supply chain, make the index highly susceptible to shifts in AI investment sentiment. Both companies were instrumental in today’s rebound, with their shares climbing 5.1% and 6.8%, respectively.

Hong Kong’s Hang Seng Index also serves as a significant benchmark. Its technology-heavy constituents could face renewed pressure if investors scale back their exposure to growth stocks. Singapore’s Straits Times Index offers a contrasting perspective, with its greater weighting towards financial institutions and dividend-paying companies.

Conversely, a cooler inflation report could trigger the opposite reaction, easing concerns about interest rates and supporting a further regional advance.

Bitcoin’s Vulnerability and ETF Outflows

Bitcoin is currently trading around $74,600, hovering near a critical support level ahead of the inflation release. Analysts have identified the $73,000 mark as a key level, with a sustained breach potentially exposing the cryptocurrency to the $70,000 range.

A hotter CPI reading could intensify selling pressure as investors recalibrate their interest-rate expectations. Bitcoin’s recent weakness also reflects a decline in institutional demand, with US spot Bitcoin exchange-traded funds experiencing $1.28 billion in outflows last week.

While a softer inflation report might spark a relief rally, it may not guarantee a sustained recovery. Stronger ETF demand and improved liquidity would likely be necessary to support a significant reversal.

NVIDIA Lawsuit Adds Another Layer of Uncertainty

Adding to market complexities, NVIDIA and its CEO Jensen Huang are facing a proposed shareholder class-action lawsuit filed in California. Investor Mark Kistenmacher alleges that NVIDIA misled shareholders regarding Huang’s relationship with Alice Huang, a former executive at Singapore-based data center company Megaspeed.

The complaint contends that the alleged relationship posed reputational and national security risks that investors should have been aware of. NVIDIA’s board has already initiated an independent investigation, and the company has not yet issued a statement regarding the lawsuit.

NVIDIA shares fell 4.3% on Monday, wiping out $190 billion in market capitalization. This decline occurred just as Asian semiconductor shares were attempting to recover from a technology-led sell-off experienced last week.

As a central player in the AI investment cycle, any erosion of confidence surrounding NVIDIA could amplify concerns about semiconductor valuations and the long-term sustainability of AI spending. This scenario could leave South Korean chipmakers particularly vulnerable should another inflation shock impact the markets.

Ultimately, the extent to which the CPI data triggers a sell-off will depend on several factors. Investors will be closely monitoring core prices, Treasury yields, and the dollar for insights into the Federal Reserve’s future policy decisions. A cooler inflation report could extend the current recovery, but a hotter reading might expose the fragility of confidence in Asian technology stocks and Bitcoin.