Asian shares rallied on Wednesday as investors showed optimism towards Nvidia’s upcoming earnings report and kept a close watch on U.S. interest rates. However, New Zealand’s central bank issued a warning about inflation, causing bond yields to rise and the kiwi dollar to jump to a one-month high.
The MSCI’s Asia-Pacific index outside Japan saw a 0.4% increase, reaching a two-year high after four consecutive weeks of gains. On the other hand, Japan’s Nikkei fell 0.6% due to concerns about imported inflation and business confidence.
Anticipation is high for Nvidia’s earnings report, with options suggesting a potential swing of 8.7% in either direction. Analysts are curious to see if the chipmaker can continue its impressive performance, with a 77% profit margin and shares up 93% this year.
The U.S. Federal Reserve is expected to release minutes from its latest meeting, likely confirming the possibility of a future rate cut. Market expectations imply a 66% chance of a cut by September. Meanwhile, UK inflation data might influence the Bank of England’s decision on policy easing.
The pound and euro held steady against the dollar, while gold prices remained firm near all-time highs. However, oil prices fell due to concerns about lower demand during the U.S. driving season, with Brent crude and U.S. crude both experiencing a decline.
Overall, investors are cautiously optimistic about the market outlook, watching for key economic data releases and corporate earnings reports for further guidance.
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https://wmbdradio.com/2024/05/21/asia-stocks-edge-up-on-nvidia-hopes-nz-dollar-jumps/
