Asian Stocks See Cautious Open Ahead of Nvidia: Markets Wrap - Bulletin

Wedoany.com Report-Nov 20, Stocks in Asia made a muted start as traders awaited earnings from the world’s most valuable company, while assessing heightened geopolitical risks.

Shares edged higher in Seoul and Tokyo, and futures pointed to small declines in Hong Kong. US contracts climbed after Wall Street benchmarks closed higher, reversing earlier losses spurred by fears about an escalation in the Ukraine-Russia war. Treasuries were little changed after rising on haven demand in the previous session.

The geopolitical headlines related to Ukraine created some selling pressure in US equities in the morning, but stocks quickly rebounded to finish the day higher as investors are anticipating Nvidia Corp. earnings, JPMorgan Chase & Co. analysts said in a note. “A nice beat seems widely anticipated.”

Traders are turning their focus to Nvidia as the chipmaker prepares to report later on Wednesday. The stock at the forefront of the artificial-intelligence boom rose 4.9% on Tuesday, leading gains in the S&P 500. Trading in options signals the results will be the most-important catalyst left this year — more than the Federal Reserve’s December meeting, according to Barclays Plc strategists.

Meanwhile, Bitcoin set another all-time high, supported by a series of developments highlighting the deepening embrace of the digital-asset industry in the US under crypto cheerleader Donald Trump.

The president-elect announced Tuesday he was tapping Cantor Fitzgerald LP Chief Executive Officer Howard Lutnick to lead the Commerce Department, a key role in facilitating Trump’s tariff and trade policies.

In the US session, the S&P 500 added 0.4%. The Nasdaq 100 climbed 0.7%. A gauge of the “Magnificent Seven” megacaps advanced 1.7%. US 10-year yields slid two basis points to 4.40%, while Australia’s equivalent was steady in early trading on Wednesday.

In Asia’s corporate news, Tokyo Gas Co. is in focus after Elliott Investment Management reported it had acquired 5.03% of the utility company’s shares. Seven & i jumped after a report that the founding family of the Japanese retail giant is looking to complete a take-private deal by the end of this year.

Elsewhere in Asia, Chinese banks are likely to keep their loan prime rates unchanged. Indonesia’s central bank decision is due, with expectations for an interest-rate hold.