Investors position for potential gains from Nvidia results and softer US inflation, driving Asian equities higher ahead of key events.
Japan’s Nikkei 225 climbed 0.6% to 66,200 by midday, recovering from an early dip, as markets await Nvidia’s earnings and US PCE inflation data. The broader Topix index matched the gain, reflecting optimism for a favorable outcome from both events.
Wall Street closed higher overnight, with traders betting on a soft PCE reading to ease Fed rate hike concerns. Nvidia’s results, due after the US market close, are seen as pivotal for the AI-driven rally, particularly for chipmakers in Korea.
The divergence between Korea’s rising share prices and foreign selling raises questions about sustained optimism if Nvidia’s print disappoints. Markets are also monitoring Fed Chair Warsh’s Jackson Hole speech for further policy cues.