SYDNEY: Asian shares followed Wall Street futures lower on Thursday as Nvidia's results disappointed some bullish investors, while the dollar steadied and the Treasury yield curve came within a whisker of turning positive.

Europe is set for a mixed open, with EUROSTOXX 50 futures off 0.2% and FTSE futures up 0.2%, ahead of the inflation data from Germany and Spain where any downside misses could add to the case of more policy easing in Europe.

U.S. weekly jobless claims, which have gained prominence given the Federal Reserve's focus on the health of the labour market, are also due later in the day.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.3% as tech stocks dragged. The Nikkei eased 0.2% while South Korea dropped 1%.

Nvidia's third-quarter revenue forecast of $32.5 billion surpassed Wall Street estimates, but the results still failed to impress the most bullish investors, who have driven a dizzying rally in its shares.

Shares of the AI darling slumped almost 7% in after-hour trading. As a result, Nasdaq futures dropped 0.7%, while S&P futures skidded 0.3%.

Nvidia's chip contractor TSMC slid 1.8%, dragging the broader Taiwanese market 0.7% down.

"Nvidia, in some ways, has become a victim of its success, its share price soaring over 180% this year and after beating earnings now in 14 of the past 15 quarters," said Tony Sycamore, analyst at IG.

"Whether today's results signal the end of investors' strong affinity for the chipmaker remains to be seen. However, at the very least, the post earnings reaction does suggest it's an excellent time to consider diversifying from Nvidia into other chipmakers."

China's blue chips were flat, having dropped for three straight sessions as disappointing results from Chinese companies highlighted the country's frail economic recovery. UBS on Wednesday cut its 2024 GDP growth forecast for China to 4.6% from 4.9%.

Chinese battery maker CATL fell 1.1% after two top Republican lawmakers sought to have the firm to be added to a restricted list of companies allegedly working with Beijing's military.

U.S. National Security Adviser Jake Sullivan is wrapping up three days of talks in Beijing intended to ease simmering tensions between the two superpowers.

Chinese food delivery giant Meituan jumped 10.7% after posting a bigger-than-expected 21% rise in second-quarter revenue.

Debt and currency markets were mostly steady in the Asia session. Fed Atlanta President Raphael Bostic said on Wednesday it may be "time to move" on rate cuts, but he wanted to see confirmation from the jobs reports and two inflation reports before the September meeting.

The dollar steadied above more than one-year lows, undermined by expectations of imminent Fed rate cuts. Futures have fully priced in a quarter-point cut next month, and even imply a 35% probability of a half-point easing.

The euro held at $1.1135, having dropped 0.6% overnight and failed to break major resistance at $1.12.

U.S. Treasury yields were also quiet, although the inverted curve between two- and 10-years came within a whisker of turning positive. That would be the first time since July 2022, barring the brief un-inverting during the Japanese market crash earlier this month.

Two-year yields held at 3.8712% while 10-year yields were at 3.8368%, just 3 basis points below the two years.

Gold climbed again and was just shy of scaling another peak. Gold prices were up 0.6% at $2,517.73 an ounce, just a touch below its record of $2,531.6.

Oil edged higher after two straight sessions of declines as concerns about demand from China and the U.S. countered supply disruptions out of Libya.

Brent crude futures rose 0.2% to $78.83 a barrel, having fallen more than 3% in the past two days, while U.S. West Texas Intermediate crude futures gained 0.3% to $74.77.

 - Reuters