Asian equities recovered some ground on Tuesday as falling oil prices and steadier US Treasury yields eased inflation concerns, although cautious trading persisted ahead of Nvidia’s upcoming earnings report and key economic data.
Asian markets regained some composure on Tuesday as falling oil prices and steadier US Treasury yields eased inflation worries, although traders still held back ahead of Nvidia’s earnings update. Reuters reported that Brent crude dropped by more than 2% after Iran and Oman reopened talks on managing the Strait of Hormuz, a development that helped pull the US 10-year Treasury yield down to about 4.63% and lifted risk appetite across the region.
The relief was most visible in energy-importing economies. MarketWatch said Japan’s Nikkei 225 closed 0.62% higher at 66,262.16, while the Topix rose 0.42% to 4,111.02. In mainland China, the Shanghai Composite gained 0.59% to 3,912.52 and the CSI 300 advanced 0.85% to 4,590.79, reflecting bargain-buying in technology shares after recent weakness.
Taiwan’s Taiex also recovered from a softer start, ending 1.47% higher at 45,832.62, as semiconductor and AI-related shares drew support from expectations surrounding Nvidia’s results. In Hong Kong, the Hang Seng was up 0.59% in late trading, with investors also reacting to Alibaba insider share purchases that helped steady sentiment in Chinese tech stocks.
Reuters said the MSCI index for Asia-Pacific shares excluding Japan was up as much as 0.85% during the session, underlining the broad but cautious improvement in sentiment. The broader message for investors was that cheaper oil can ease pressure on prices and corporate costs, but the market’s next move may still depend on whether Nvidia’s numbers justify the AI rally and whether upcoming US inflation data and the Jackson Hole symposium revive fears of higher rates.
Saxo Investment Strategist Charu Chanana said options markets were now pricing a smaller post-earnings swing in Nvidia than in the past, suggesting the company’s results are becoming more predictable as a market event.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
