• Asian equities fell due to Nvidia's subdued revenue forecast, causing a ripple effect in global markets.
• The dollar and Bitcoin surged in anticipation of Trump's proposed tariffs and crypto-friendly policies.
• Indian conglomerate Adani Group faced scrutiny as Gautam Adani was indicted over an alleged bribery and fraud scheme.
• These developments have led to significant shifts in global financial markets, highlighting the interconnected nature of these markets.

Asian equities experienced a downturn on Thursday, following a subdued revenue forecast from Nvidia (NVDA.O), a leading player in the AI industry. This disappointing projection from the world's most valuable firm led to a 0.47% slip in Nasdaq futures and a 0.3% ease in S&P 500 futures. The impact was felt across the Asia-Pacific region, with MSCI's broadest index of Asia-Pacific shares outside Japan easing 0.23%, Taiwan's tech-heavy stocks down 0.5%, and Japan's Nikkei falling 0.7%.

The spotlight was firmly on Nvidia's earnings, which projected its slowest revenue growth in seven quarters, leading to a drop in its shares. George Boubouras, head of research at Melbourne-based K2 Asset Management, attributed the market reaction to high expectations for each quarterly result. He stated, While they delivered impressive revenue growth and momentum, the market clearly wants more.

Charu Chanana, chief investment strategist at Saxo, echoed this sentiment, stating that Nvidia's earnings were a clear indication that the momentum in AI was only extending, with supplies being the bigger headwind rather than demand. She further added, The structural AI tailwind could continue to be a key driver for equities into the next year.

Dollar and Bitcoin Surge Amid Anticipation of Trump's Policies

In the midst of these developments, the dollar has been on the rise since the U.S. election in early November, in anticipation of the proposed tariffs of the incoming Trump administration. The dollar index, which measures the U.S. currency against six rivals, was at 106.56, not far from the one-year high of 107.07 it touched last week. The index has risen more than 2% since the Nov. 5 election.

The prospect of the Federal Reserve having to temper its rate cut cycle has also boosted the dollar. Markets were pricing in the Fed lowering borrowing costs by 25 basis points next month at 56%, down from 82.5% just a week ago, according to CME's FedWatch Tool.

Two Federal Reserve governors on Wednesday laid out competing visions of where U.S. monetary policy may be heading, with one citing ongoing concerns about inflation and another expressing confidence that price pressures will continue to ease.

In the cryptocurrency market, Bitcoin has been on a tear since the election as the Trump administration is expected to relax regulations and be crypto friendly. The world's largest cryptocurrency, bitcoin, soared to touch a record of $95,040 in early trading and was last at $94,787.

Adani Group Under Scrutiny Amid Allegations of Bribery and Fraud

In another significant development, Indian conglomerate Adani Group came under the spotlight after U.S. prosecutors said on Wednesday that Gautam Adani, billionaire chair of the group, has been indicted in New York over his role in an alleged multibillion-dollar bribery and fraud scheme. This led to a sharp fall in dollar bond prices for Adani companies in early Asia trade on Thursday.

The U.S. Securities and Exchange Commission (SEC) has charged billionaire Gautam Adani, founder and chairman of the Adani Group, with allegedly defrauding American investors and bribing officials.

The SEC alleged that the bribery scheme was orchestrated to enable renewable energy companies Adani Green and Azure Power to capitalise on a multi-billion-dollar solar energy project awarded by the Indian government.

The complaint charges them with violating the antifraud provisions of the federal securities laws and seeks permanent injunctions, civil penalties, and officer and director bars.