Asian markets track Wall St record ahead of Nvidia results, Fed minutes

HONG KONG,  China — Asian investors fought Wednesday to revive a recent rally across markets as they turned their focus on the release later in the day of earnings from US tech darling Nvidia.

Record closes for the S&P 500 and Nasdaq provided a little inspiration, even with few catalysts to drive buying, with minutes from the Federal Reserve’s May policy decision possibly giving an insight into officials’ thinking with regard to interest rates.

A slowdown in US inflation and China’s announcement last week of plans to support its crucial but battered property sector have helped propel equities but, with that euphoria petering out, traders are taking a breather.

READ: China rolls out new measures to fix its property crisis, spur growth

The next major driver could be the results from Nvidia — the third-largest US company by market capitalization — which is being seen as a gauge of overall market sentiment.

The chip-making giant’s stock price has rocketed in recent years — its shares are up around 90 percent in 2024 — with the high-end processors prized by firms looking to get ahead in the booming artificial intelligence sector.

However, there is a worry that the figures do not match sky-high expectations, which some observers say could spark a hefty sell-off, particularly among market-heavyweight tech firms.

After the previous day’s retreat, most Asian markets rose Wednesday, with Hong Kong, Shanghai, Sydney, Seoul, Wellington, Taipei, and Jakarta all in positive territory. Tokyo fell, however.

Central banks reluctant to begin rate-cutting

Investors are also looking forward to getting an eye on the minutes from the Fed’s May 1 rate decision, which will be pored over for an idea about the thought process as decision-makers considered three straight months of above-forecast consumer inflation data.

READ: US consumer inflation eased slightly in April, in good news for Biden

While the April reading on prices showed a slowdown, a number of central bank officials are reluctant to begin cutting too early.

Fed governor Christopher Waller said he wanted to see “several” months of additional data, while Atlanta boss Raphael Bostic warned that “one number is not a trend” and he did not see a reduction before the fourth quarter.

Bostic’s comments were echoed by his Cleveland and Boston counterparts Loretta Mester and Susan Collins.

“I think this is a moment or a period when patience really matters,” Collins said. “I think the data has been very mixed

“It’s going to take longer than I had previously thought.”