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

*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.