Shares edged up in Australia while gauges in Japan and South Korea were flat. Chips and the electronics sector were in focus with Nikon Corp. shares jumping 20% in Japan while Chinese artificial intelligence linchpin Cambricon Technologies Corp. swung to a record profit. US shares gained Tuesday, led by Nvidia before the tech giant’s hotly-anticipated earnings that are scheduled to report after the bell on Wednesday.
A gauge of the dollar and longer-dated Treasuries steadied in Asia after they declined Tuesday following President Donald Trump’s push to oust Federal Reserve Governor Lisa Cook. The gap between five and 30-year yields is at its steepest since 2021.
While political meddling in monetary policy after Trump’s move drew much of the market’s focus, traders face key risks this week with Nvidia’s earnings and Friday’s inflation report. Even with tariff and geopolitical headlines flaring, investors remain anchored to a bullish market script: a likely September rate cut, resilient economic growth, and corporate earnings strong enough to keep equity sentiment afloat.
“Equity markets will be looking squarely at Nvidia’s upcoming earnings report for cues as to whether the current bull run continues or stalls out,” wrote Tim Waterer, chief market analyst at KCM Trade.