22win Asian markets rally after US bounce as Nvidia comes into focus
A currency trader reacts near a screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Tuesday, Nov. 19, 2024. (AP Photo/Ahn Young-joon)
Hong Kong, China — Asian markets rose Tuesday after a broadly positive day on Wall Street, with focus turning to the upcoming release of tech giant Nvidia’s earnings, while traders also kept tabs on Donald Trump’s picks for his new administration.
Hong Kong and Shanghai were among the better performers in early action on hopes that China will unveil more stimulus after a raft of measures at the end of September aimed at kickstarting the economy, with an eye on the property sector.
Article continues after this advertisementEquities have seen big swings since Trump’s election at the start of the month, with optimism over pledged tax cuts and deregulation offset by worries that they and threatened import tariffs will reignite inflation.
FEATURED STORIES BUSINESS Peso may fall to 59, BSP to intervene BUSINESS BIZ BUZZ: KathDen flick breaks into US box office top 10 BUSINESS PH seen to miss ʼ24 GDP growth targetREAD: Stocks, dollar hesitant as traders brace for Nvidia earnings
That has also given a headache to policymakers at the Federal Reserve who are still fighting to bring prices under control, with market-watchers saying investors are scaling back their bets on how many more interest rate cuts they will announce.
Article continues after this advertisementThere is also a fear that his second term will see another debilitating trade war with China just as Beijing battles against slowing growth, persistently low inflation or deflation, and stunted consumer confidence.
Article continues after this advertisementStill, an advance for the S&P 500 and Nasdaq, helped by an easing of US Treasury yields, provided a boost after a tough run last week.
Article continues after this advertisementHong Kong extended Monday’s gains and Shanghai bounced back on hopes China will push more support for the economy.
Tokyo also recovered from a soft start to the week, while Sydney, Seoul, Singapore, Taipei, Wellington and Manila also gained.
Article continues after this advertisementWith few macroeconomic catalysts to drive business this week, the main story is Nvidia’s earnings, which is being seen as a key guide to the health of an AI-fuelled surge in tech firms this year that has helped push markets to record highs.
“With its towering presence in both market cap and artificial intelligence, Nvidia has become the ultimate market heavyweight,” said independent analyst Stephen Innes.
After surging almost 800 percent over the past year “its results are set to either crown AI as the undisputed king or trigger a dramatic rethinking of the sector’s sky-high valuations”.
“Nvidia’s results will likely steer broader tech market sentiment, underscoring its pivotal role as a bellwether for tech and AI-related stocks.”
Key figures around 0230 GMTTokyo – Nikkei 225: UP 0.6 percent at 38,429.37 (break)
Hong Kong – Hang Seng Index: UP 0.6 percent at 19,691.17
Shanghai – Composite: UP 0.2 percent at 3,331.85
Euro/dollar: DOWN at $1.0596 from $1.0600 on Monday
Pound/dollar: DOWN at $1.2675 from $1.2678
Dollar/yen: DOWN at 154.12 yen from 155.04 yen
Euro/pound: UP at 83.59 pence from 83.57 pence
West Texas Intermediate: FLAT at $69.16 per barrel
Brent North Sea Crude: UP 0.1 percent at $73.38 per barrel
New York – Dow: DOWN 0.1 percent at 43,389. points (close)
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London – FTSE 100: UP 0.6 percent at 822win,109.32 (close)
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