Asian markets moved in different directions on Wednesday as investors weighed US political pressure on the Federal Reserve against the coming Nvidia earnings. Hong Kong, Sydney and Taipei inched higher, while Tokyo and Seoul were flat. Shanghai and Bangkok slipped. The mixed tone followed Wall Street’s modest gains and European losses, with Paris tumbling on fears France’s minority government could fall after Prime Minister François Bayrou proposed a confidence vote on budget cuts, according to the source article.
Nvidia Earnings Take Center Stage
Traders trained their focus on Nvidia earnings due Wednesday evening. The AI chip leader has become “the market’s lodestar,” wrote Stephen Innes of SPI Asset Management. Analysts expect revenue to jump 53% to $46 billion. However, as Innes cautioned, investors want proof the AI boom is not “smoke and mirrors.” The outcome of Nvidia earnings could set the tone for global tech and broader risk appetite.
Fed Independence Concerns and Data Ahead
Markets also tracked US President Donald Trump’s move to fire Federal Reserve governor Lisa Cook, which Cook disputes legally. The step stoked concerns about the central bank’s independence, even as Fed chair Jerome Powell signalled more rate cuts may be coming. Investors now await a US growth update on Thursday and a key inflation gauge on Friday for clues on the path of rates—factors that could amplify the impact of Nvidia earnings on market direction.
Oil Eases; Key Levels in Focus
Oil prices extended a slow slide as traders watched signs of a possible Russia-Ukraine peace deal. Around 02:15 GMT, West Texas Intermediate edged down 0.1% to $63.21 a barrel and Brent slipped 0.1% to $67.18. Currency moves were modest: the euro dipped to $1.1627, the pound eased to $1.3464, and the dollar firmed to ¥147.70. In equities, Hong Kong’s Hang Seng rose 0.2% to 25,586.68; the Nikkei was flat at 42,408.10; and Shanghai’s Composite fell 0.2% to 3,862.55.
