Asian Markets Rally on US Rate Cut Expectations; Nvidia Earnings in Focus

1 min read     Updated on 25 Aug 2025, 06:22 AM
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Reviewed by
Shraddha JoshiBy ScanX News Team
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Overview

Asian share markets started positively, driven by expectations of US interest rate cuts following Fed Chair Powell's dovish stance. Japan's Nikkei rose 0.80%, South Korea 0.70%, and Australia 0.90%. Futures markets price an 84% chance of a September rate cut. The US dollar steadied at 147.28 yen, while gold reached $3,365.00 an ounce. Investors await Nvidia's earnings report, with forecasts suggesting a 48% rise in EPS and $45.90 billion in revenue. Separately, the US government announced plans to acquire a 9.90% stake in Intel for $8.90 billion.

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*this image is generated using AI for illustrative purposes only.

Asian share markets kicked off the week on a positive note, buoyed by expectations of potential US interest rate cuts following Federal Reserve Chair Jerome Powell's dovish stance. The optimism spread across major indices in the region, with investors closely watching upcoming events, particularly Nvidia's earnings report.

Market Movements

Japan's Nikkei index led the gains, rising 0.80%, while South Korean stocks advanced 0.70%. Australia's market also joined the rally, climbing 0.90%. The upbeat sentiment in Asian markets reflects the global shift in monetary policy expectations.

US Rate Cut Expectations

Futures markets are pricing in a significant probability of monetary easing in the United States:

  • 84% chance of a quarter-point rate cut in September
  • Expectations of at least 100 basis points of easing by mid-next year

These expectations have put downward pressure on Treasury yields and the US dollar.

Currency and Commodity Markets

The shifting market dynamics have had notable impacts on currency and commodity markets:

Asset Price/Rate
US Dollar/Yen 147.28
Euro/US Dollar 1.1702
Gold (per ounce) 3,365.00
Brent Crude (barrel) 67.31

The US dollar steadied at 147.28 yen after a 1% drop on Friday, while the euro held firm at $1.1702. Gold reached $3,365.00 an ounce, building on a 1% gain from the previous week. Brent crude oil showed slight firmness, trading at $67.31 per barrel.

Nvidia Earnings in Focus

Investors are eagerly anticipating Nvidia's earnings report, scheduled for release on Wednesday. Market forecasts suggest:

  • A 48% rise in earnings per share
  • Expected revenue of $45.90 billion

Options markets indicate the potential for significant stock movement, with predictions of a nearly 6% swing in either direction following the earnings announcement.

Intel Investment News

In a separate development, former US President Trump announced a significant investment in the semiconductor sector:

  • The US government will acquire a 9.90% stake in Intel
  • The investment is valued at $8.90 billion
  • The purchase price is set at $20.47 per share, representing a discount from Intel's closing price of $24.80

This move underscores the strategic importance of the semiconductor industry and could have implications for the broader tech sector.

As global markets continue to react to these developments, investors will be closely monitoring further signals from central banks and key earnings reports in the coming days.

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Asian Markets Slide as Weak US Jobs Data Fuels Rate Cut Expectations

1 min read     Updated on 04 Aug 2025, 07:05 AM
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Reviewed by
Shriram ShekharBy ScanX News Team
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Overview

Asian share markets declined on Monday, mirroring Wall Street's retreat after disappointing US employment data. The weak job figures significantly increased expectations for a potential Federal Reserve rate cut in September, with markets now pricing in a 90% probability. The US dollar weakened, particularly against the Japanese yen, while Treasury yields fell. Japan's market dropped 2.10%, and Korea's market fell 0.20%. Oil prices extended their decline, with Brent crude at $69.24 per barrel, while gold remained stable at $3,361.00 per ounce.

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*this image is generated using AI for illustrative purposes only.

Asian share markets experienced a downturn on Monday, following the retreat on Wall Street after disappointing US employment data raised concerns about the economic outlook. The weak job figures have significantly increased expectations for a potential Federal Reserve rate cut in September.

US Jobs Report Disappoints

The July payrolls report in the United States revealed job growth significantly below expectations. Moreover, revisions to previous data indicated that payrolls were 290,000 lower than initially reported. The three-month average for job growth has dramatically slowed to 35,000 from 231,000 at the start of the year, signaling a potential cooling in the labor market.

Market Reaction

In response to the weak employment data, markets have adjusted their expectations for monetary policy:

  • The probability of a September Federal Reserve rate cut surged to 90%, up from 40% before the jobs report.
  • The US dollar weakened considerably, losing 2.30% against the Japanese yen on Friday and continuing its decline.
  • Two-year Treasury yields fell by 4 basis points to 3.66%, reflecting changing interest rate expectations.

Asian Market Performance

The disappointing US data had a ripple effect on Asian markets:

Market Performance
Japan -2.10%
Korea -0.20%

Commodities Outlook

The weak economic data also impacted commodity markets:

  • Oil prices extended their decline, with Brent crude dropping 0.60% to $69.24 per barrel. This follows OPEC+'s agreement to increase output for September.
  • Gold remained relatively stable at $3,361.00 per ounce, after climbing over 2% on Friday, as investors sought safe-haven assets.

The current market movements reflect growing concerns about global economic growth and changing expectations for monetary policy, particularly in the United States. Investors will likely continue to monitor economic indicators closely for further signs of slowdown or resilience in the coming weeks.

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