Asian equities rebounded on Tuesday as Brent crude oil prices fell sharply, offsetting caution ahead of Nvidia’s quarterly earnings release. The MSCI AC Asia Pacific index rose about 1%, extending its streak to four gains in five sessions.
Regional benchmarks posted mixed performances, with South Korea’s KOSPI leading gains at 1.2%, followed by Thailand’s SET Index at 0.8% and Japan’s Nikkei 225 at 0.7%. Australia’s S&P/ASX 200 was the notable laggard, declining 0.3%, while India’s Nifty 50 slipped 0.2%. U.S. equity futures also pointed to a subdued open, with Nasdaq 100 and S&P 500 contracts each down around 0.1-0.2% in Asian trade.
Oil prices extended their weekly decline, with Brent crude falling about 2.6% to $86.25 per barrel. The drop followed reports that Iran and Oman were discussing temporary shipping arrangements through the Strait of Hormuz, though vessel traffic remains significantly below normal levels. The decline in energy costs provided support to risk appetite across regional markets.
Chipmakers led sectoral advances, with LARGAN Precision surging 10% and Samsung Electronics gaining 2.3%. SMIC rose 4.1%, while SK Hynix added 2.0%. Semiconductor firm Cambricon Technologies climbed 1.5%. On the downside, Kioxia Holdings fell 2.2% and LG Innotek dropped 2.7%. Chinese tech names also advanced, with Tencent up 1.1%, Baidu gaining 1.5%, and Alibaba rising 1.8%.
Investor attention remains fixed on Nvidia’s second-quarter results, expected after U.S. markets close. Analysts project revenue of approximately $92.2 billion, nearly double the year-ago period, with third-quarter sales forecast at $104.2 billion. Key metrics to watch include headline beats, forward guidance, demand for its Rubin AI chips, and evidence of sustained returns from AI infrastructure investments.
Macroeconomic data added to the mixed signals. Australia’s July consumer price index rose 3.5% year-on-year, while trimmed-mean inflation held steady at 3.6%. The data increased market odds of a September rate hike by the Reserve Bank of Australia to 36%, up from 17% prior to the release. In Thailand, the central bank is widely expected to maintain its benchmark rate at 1% when it meets later in the day.
Global investors will also focus on U.S. personal consumption expenditures inflation data due on Wednesday and Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole economic symposium on Friday.
