SYDNEY- Asian shares were trading cautiously on Wednesday as investors looked ahead to earnings results from artificial intelligence darling Nvidia where the risk of disappointment is high, while the dollar steadied after three straight sessions of declines.
The world’s most valuable company Nvidia will report its third-quarter results after the bell. Shares climbed 4.9 percent on Tuesday and options imply a move of almost 9 percent either direction in the $3.6 trillion stock often seen as a barometer for the tech sector’s shift to AI.
Nasdaq futures rose 0.2 percent on Wednesday on top of a 1 percent jump overnight. EUROSTOXX 50 futures gained 0.4 percent, while FTSE futures were flat.
MSCI’s broadest index of Asia-Pacific shares outside Japan was off 0.1 percent, and Tokyo’s Nikkei slipped 0.2 percent.
Bitcoin last held above $92,000, having broken above $94,000 for the first time overnight on expectations US President-elect Donald Trump’s administration will be crypto-friendly. Investors are also watching Trump’s pick for Treasury secretary, which may come as soon as Wednesday.
In China, the central bank held benchmark lending rates steady as widely expected. Chinese mainland stocks outperformed, with blue chips gaining 0.4 percent. Hong Kong’s Hang Seng index edged up 0.1 percent.
“(Nvidia) was naturally the key topic on everyone’s mind. Big-picture, a nice beat seems widely anticipated tomorrow,” said Joshua Meyers, executive director at JPMorgan, in a note to clients.
“FY26 expectations have become quite ebullient, a worry that comes up increasingly in conversations,” Meyers said, adding that Nvidia CEO Jensen Huang’s commentary on the earnings call would be particularly important to “level-set expectations (or not).”
Overnight, investors were rattled by Ukraine’s use of US missiles to strike Russia, with Moscow lowering the threshold for a possible nuclear strike, although those fears seem to have abated a little. Safe-haven currencies such as the Japanese yen and the Swiss franc gained briefly, as did US Treasuries. Benchmark 10-year note yields were last up 2 basis points at 4.4041 percent, having fallen 4 bps overnight and still some distance away from a five-month top of 4.505 percent.
