Asian Markets mixed as investors await Nvidia earnings, weigh political uncertainty

Asian markets showed a mixed performance on Wednesday morning after a wave of losses the previous day, with investor focus shifting from political tensions around the US central bank to the highly anticipated earnings report from AI chipmaker Nvidia.

Markets in Tokyo and Seoul traded flat, while Hong Kong, Sydney, and Taipei recorded slight gains. On the other hand, Shanghai and Bangkok slipped into negative territory.

This came after Wall Street posted modest gains on Tuesday, attempting to shake off concerns from President Donald Trump’s unprecedented move to dismiss US Federal Reserve governor Lisa Cook. Trump accused Cook of making false statements on her mortgage applications, but she denied the allegations and maintained he had no authority to fire her, with her lawyer confirming plans to challenge the dismissal legally. The decision has fuelled fears about the independence of the Federal Reserve, especially as Trump continues to pressure Fed Chairman Jerome Powell to accelerate interest rate cuts. Powell had hinted last week that more cuts were likely, which had initially boosted markets.

Meanwhile, political jitters in Europe added to global investor caution. France’s Paris stock market tumbled after Prime Minister François Bayrou called for a confidence vote to resolve a standoff over his proposed budget cuts, raising fears that the minority government could collapse.

Investors are closely awaiting Nvidia’s second-quarter results due later on Wednesday. Analysts project a 53 per cent surge in revenue to $46 billion, with the company’s performance seen as a key gauge of whether the AI boom has staying power. “The company has outgrown the tech sector and become the market’s lodestar,” Stephen Innes of SPI Asset Management noted, adding that markets want proof that the AI wave is more than just hype.

Oil prices also edged lower for a second day as hopes rose for a peace deal between Ukraine and major crude producer Russia, pulling back recent gains.

Key Market Figures at 0215 GMT:

Tokyo – Nikkei 225: Flat at 42,408.10

Hong Kong – Hang Seng: Up 0.2% at 25,586.68

Shanghai – Composite: Down 0.2% at 3,862.55

New York – Dow Jones: Up 0.3% at 45,418.07 (close)

London – FTSE 100: Down 0.6% at 9,265.80 (close)

Euro/dollar: $1.1627 (down)

Pound/dollar: $1.3464 (down)

Dollar/yen: 147.70 yen (up)

West Texas Intermediate: $63.21 per barrel (down 0.1%)

Brent Crude: $67.18 per barrel (down 0.1%)