Asian markets edged lower on cautious trading as investors awaited Nvidia Corp.’s earnings, a key driver for the region’s tech-heavy stocks. The MSCI Asia Pacific Index slipped 0.3%, trimming gains from the prior session’s near 1% rise. Markets in Japan and Australia weakened, while equities in mainland China and Hong Kong saw mixed performance.
US stock futures advanced after Wall Street staged a recovery, overcoming earlier losses tied to heightened geopolitical tensions from Russia’s war in Ukraine. The S&P 500 rose 0.4%, while the Nasdaq 100 climbed 0.7%.
Focus on Nvidia’s AI Leadership
Investor focus is squarely on Nvidia, the world’s most valuable chipmaker, as it reports earnings amid expectations for sustained demand for artificial intelligence hardware. Nvidia’s shares rose 4.9% on Tuesday, underscoring market optimism about its leadership in AI.
Ken Wong, Asian equity portfolio specialist at Eastspring Investments, noted the lack of immediate catalysts for regional stocks. “We’re off two-year highs for the Dollar Index, which could support momentum in Asian equities if the index continues to trend downward,” he said.
The dollar held steady after a three-day decline, while US Treasuries saw little movement. The 10-year yield eased slightly to 4.40%.
Regional Highlights
In corporate developments, Tokyo Gas Co. shares surged the most since 1987 following news that Elliott Investment Management has acquired a significant stake. Seven & i Holdings also jumped on reports that the founding family is pursuing a privatization deal, potentially concluding by February.
Hong Kong broadband provider HKBN Ltd. saw its shares rise as much as 15% amid discussions of a potential acquisition by China Mobile.
Meanwhile, Indonesia’s central bank is expected to maintain its benchmark interest rates later in the day, aligning with regional trends of monetary stability.
Broader Market Trends
Gold extended its rally for a third consecutive day as geopolitical tensions in Ukraine spurred demand for safe-haven assets. Oil prices remained steady, with industry reports pointing to an increase in US crude inventories ahead of official government data.
Bitcoin continued its upward trajectory, setting another all-time high amid growing institutional adoption and perceived support for cryptocurrencies under President-elect Donald Trump.
In US political news, Trump announced the nomination of Howard Lutnick, CEO of Cantor Fitzgerald LP, as the next Commerce Secretary, a pivotal position in advancing the administration’s tariff and trade policies.
Asia’s market trajectory remains uncertain as investors balance geopolitical risks, corporate earnings, and evolving global monetary conditions.
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