Article Summary
Asian shares and the U.S. dollar climbed on Wednesday as promising economic data from the U.S. and optimism about tech earnings, particularly from Nvidia, lifted investor sentiment. U.S. consumer confidence beat expectations, and a thaw in trade tensions between the U.S. and Europe also contributed to the positive mood. Nvidia, the last of the seven tech giants to report earnings, is expected to post strong first-quarter results, which could further boost market confidence. Meanwhile, the dollar strengthened against a basket of currencies, while oil prices and gold saw modest gains.
What This Means for You
- Monitor Nvidia’s earnings report as it could trigger significant market movements, particularly in technology shares.
- Stay informed about the U.S. economy’s health, as positive data is likely to impact global financial markets and the U.S. dollar’s value.
- Be aware of global trade developments, as improving relations between major economies can have a positive influence on market stability and growth.
- Be cautious about the strengthening dollar, as it might affect the value of your international assets and transactions.
Asian Shares, U.S. Dollar Climb on Rosy Data, Tech Optimism
By Rocky Swift
TOKYO (Reuters) – Asian shares continued a rally from Wall Street and the dollar held gains on Wednesday on promising economic signs in the United States and speculation of strong tech earnings. Markets welcomed what appeared to be easing trade frictions between the U.S. and Europe while global bond markets settled down after a scary surge in long-term yields. U.S. consumer confidence surprised on the upside ahead of closely watched jobs figures on Thursday.
Nvidia jumped more than 4% yesterday and will be the last of the Magnificent 7 tech giants to report earnings after markets close in the U.S. “There is renewed confidence that Nvidia can beat the consensus estimates,” said Chris Weston, head of research at Pepperstone. If Nvidia comes through with better-than-expected sales and profit margins “the rally is on,” he added. The chipmaker is expected to report that first-quarter revenue surged 66.2% to $43.28 billion, according to data compiled by LSEG.
In signs of a thaw between the U.S. and Europe, European Union officials have asked companies for details of their U.S. investment plans, according to two sources familiar with the matter. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.3% in morning trading while Japan’s Nikkei advanced 0.6%, climbing a fourth straight session.
The dollar index, which tracks the greenback against a basket of currencies, rose 0.1%, adding to Tuesday’s 0.6% rally. The greenback advanced 0.1% to $1.132 against the euro. Australian shares were up 0.17%, but the nation’s currency slid 0.2% after April consumer price data came in above expectations. The kiwi dollar slid 0.3% after the Reserve Bank of New Zealand cut rates as expected.
Japanese bonds slid, trimming a surge yesterday, ahead of a 40-year auction and on speculation the Ministry of Finance will reduce the issuance of long-dated securities. Oil prices ticked up in early trading as the U.S. barred Chevron CVX.N from exporting crude from Venezuela under a new authorization on its assets there, raising the prospect of tighter supply. Brent crude futures rose 0.4% to $64.37 a barrel, while U.S. Spot gold rallied 0.1% after dropping more than 1% on Tuesday.
(Rocky Swift in Tokyo; Editing by Saad Sayeed)
People Also Ask
- What are the key factors driving the recent surge in Asian shares?
- How could Nvidia’s earnings report impact technology stocks?
- What is the current outlook for U.S.-European trade relations?
- What is the potential impact of the U.S. dollar’s appreciation on global markets?
Expert Opinion
The positive trend in Asian shares might continue, provided the U.S. economy remains robust, and tech earnings continue to surprise on the upside. However, investors should remain vigilant, as persistent strength in the U.S. dollar, global trade dynamics, and tightening oil supplies could introduce new risks and uncertainties.
Key Terms
- Asian Shares
- U.S. Dollar
- Economic Data
- Tech Earnings
- Global Trade Tensions
- Oil Prices
- Gold Prices
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