(Bloomberg) — Technology shares advanced in Asia ahead of Nvidia Corp.’s earnings, as investors seek cues on where the markets head next after a strong rally since April.
The artificial intelligence theme remains a focus with Chinese AI linchpin Cambricon Technologies Corp. jumping as much as 8.2% to its highest ever after a record profit. Nikon Corp. shares jumped 21% in Japan. Nvidia will report after the bell Wednesday. A gauge of Asian technology shares rose as much as 0.5% while a broader index swung between small gains and losses.
The dollar and longer-dated Treasuries steadied in Asia after they declined Tuesday following President Donald Trump’s push to oust Federal Reserve Governor Lisa Cook. Long-dated bonds from the US to France and the UK slumped on Tuesday.
While meddling in monetary policy after Trump’s move drew much of the market’s focus, traders face key risks this week with Nvidia’s earnings and Friday’s inflation report. Even with political headlines flaring, investors remain anchored to a bullish market script: a likely September interest-rate cut, resilient economic growth, and corporate earnings strong enough to keep equity sentiment afloat.
“Equity markets will be looking squarely at Nvidia’s upcoming earnings report for cues as to whether the current bull run continues or stalls out,” wrote Tim Waterer, chief market analyst at KCM Trade.
Nvidia’s earnings report is expected to give an update on the artificial intelligence spending boom — and how the US-China rivalry is limiting growth. Analysts estimate that the biggest buyers of AI hardware are still investing heavily in new gear, with the company’s sales set to grow at a pace of more than 50% this year.
Dimming the excitement is confusion over how much business Nvidia will be able to do in China.
“Nvidia’s results transcend the company, becoming a barometer of macroeconomic activity, a talisman for the artificial intelligence trade, and a critical pressure point for global geopolitics,” wrote Kyle Rodda, a senior market analyst at Capital.com in Melbourne.
Meanwhile, Trump said he was prepared for a legal fight while the Fed, weighing in for the first time this week, said it would abide by any court decision in Cook’s legal challenge of her dismissal.
The Fed’s perceived independence from government whims is a bedrock assumption of US markets, and any change to that perception could weigh on US credit ratings.
“Trump’s push to fire Cook has exacerbated concerns about the Fed’s independence,” said Ian Lyngen at BMO Capital Markets. “While the price action in US rates has been largely contained to the recent range, many of the go-to hedges against an erosion of Fed independence outperformed on the news of Cook’s firing.”
Separately, economic data Tuesday showed US orders for business equipment increased in July by more than projected, suggesting companies are moving forward on investment plans as uncertainty around trade and tax policy gradually diminishes.
Also, consumer confidence fell slightly in August as Americans worried more about their prospects of finding a job.
On the trade front, the US will slap a crushing 50% tariff on some Indian goods starting Wednesday — the highest in Asia — as Trump presses ahead with the levies to punish New Delhi for buying Russian oil.
Corporate News:
Cracker Barrel Old Country Store Inc. shares rose as much as 8.6% in extended New York trading after the company said it’s getting rid of a new logo that had sparked controversy and prompted a slump in its share price. MongoDB shares soared 30% in extended trading, after the software company reported second-quarter results that were much stronger than expected. It also raised its full-year forecast. Woolworths Group shares slid as much as 13%, the most since October 1997, after an update on its Australian food sales showed the grocer lagging behind rival Coles, along with a weak outlook for FY26. Some of the main moves in markets:
Stocks
S&P 500 futures were little changed as of 10:56 a.m. Tokyo time Japan’s Topix fell 0.2% Australia’s S&P/ASX 200 rose 0.2% Hong Kong’s Hang Seng rose 0.3% The Shanghai Composite fell 0.1% Euro Stoxx 50 futures rose 0.3% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1633 The Japanese yen fell 0.2% to 147.65 per dollar The offshore yuan was little changed at 7.1492 per dollar Cryptocurrencies
Bitcoin was little changed at $111,294.45 Ether fell 0.6% to $4,562.26 Bonds
The yield on 10-year Treasuries was little changed at 4.27% Japan’s 10-year yield was unchanged at 1.625% Australia’s 10-year yield was little changed at 4.32% Commodities
West Texas Intermediate crude fell 0.1% to $63.17 a barrel Spot gold fell 0.2% to $3,386.32 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Rob Verdonck.
©2025 Bloomberg L.P.