Nvidia earnings in focus as Asian stocks extend losses

Asian stock markets extended their losing streak on Wednesday as renewed inflation concerns linked to escalating geopolitical tensions pushed global bond yields higher, while investors turned their attention to earnings from Nvidia to gauge whether the world’s most valuable firm can support sentiment in an environment of rising borrowing costs.

A broad sell-off in global bond markets continued as traders increased bets that the Federal Reserve may still need to raise interest rates further this year, News.Az reports, citing Reuters.

Benchmark U.S. 10-year Treasury yields climbed to a 16-month high of 4.687% overnight, while the 30-year yield rose to 5.198%, levels not seen since 2007.

Weakness in global sentiment is expected to carry into European trading, with region-wide stock futures down 0.7%. Futures tied to the Nasdaq slipped 0.1%, while S&P 500 futures eased 0.2% ahead of the U.S. session.

Oil prices also softened slightly on Wednesday, with Brent crude futures down 0.5% but still trading above $110 per barrel at $110.7. Markets continued to monitor geopolitical risks, including the Strait of Hormuz remaining effectively closed. U.S. President Donald Trump said he may consider further strikes on Iran, a day after indicating a pause to allow negotiations with Tehran.

In Beijing, following a recent high-profile visit by Trump, Chinese President Xi Jinping held talks with Russian President Vladimir Putin, stressing the urgency of ending the war in the Middle East.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.7%, marking its fourth consecutive daily decline. Japan’s Nikkei dropped 1.5%, extending losses for a fifth straight session.

South Korea’s KOSPI fell 1.7%, weighed down in part by a 1.4% drop in Samsung Electronics after its labor union confirmed plans for an 18-day strike starting Thursday, raising concerns over semiconductor supply disruptions.

China’s blue-chip CSI300 index was unchanged, while Hong Kong’s Hang Seng Index slipped 0.6%.

Focus now shifts to Nvidia’s upcoming first-quarter earnings release after the market close on Wednesday. Expectations remain high, with analysts surveyed by LSEG forecasting revenue growth of nearly 80% year-on-year to about $79 billion.

In currency markets, U.S. Treasuries continued to reflect recent losses in Asia, with the 10-year yield holding at around 4.6613% after a sharp 21-basis-point rise over the past three sessions. The 30-year yield stood at 5.1795%, following a 17-basis-point jump since last Thursday.

The U.S. dollar hovered near a six-week high against major peers, steady at 158.95 yen after seven straight sessions of gains that erased most of the yen’s intervention-driven recovery following Japan’s late-April currency support measures near the 160 level.

The euro last traded at $1.1597, near its weakest level since April 8, while the British pound stood at $1.3391, close to recent six-week lows.

Gold prices slipped 0.4% to $4,463 an ounce, marking their lowest level since late March, as dollar strength weighed on precious metals.

News.Az 

By Nijat Babayev