Asian Stocks Echo Wall Street Gains With Nvidia Earnings In Focus

Stocks in the Asia-Pacific region gained on Tuesday taking cues from overnight gains on Wall Street while the focus was on the upcoming Nvidia Inc. earnings and the US President-elect Donald Trump’s new administration.

Equity benchmarks in Japan and Australia gained the most during the session opening. Futures in Tokyo and Hong Kong rose while US contracts remained steady. The Nikkei was 182 points, or 0.48%, higher at 38,417, while the S&P ASX 200 was up 56 points, or 0.56%, at 8,346 as of 5:35 a.m.

Stocks in the Asia region will eye some gains this week after tumbling by 3.9% last week, their worst plunge in about six months.

While China's top officials are reeling under pressure to help the economy stage a comeback, its loan prime rates are due on Wednesday, and the banks are expected to keep them unchanged, according to Bloomberg News.

Wall Street brokerages have turned more cautious on Chinese stocks as Morgan Stanley strategists reduced Chinese equities to a slight underweight within the region, while Goldman Sachs Group Inc. trimmed its index target on the MSCI China Index.

Meanwhile, during the meeting with Chinese President Xi Jinping at the G-20 summit in Brazil, UK Prime Minister Keir Starmer stirred up controversy by bringing up Taiwan and human rights issues.

Despite the final declaration being approved by all G-20 nations, several leaders are still urging stronger language against Russia and Hamas about the hostilities.

After a stellar victory in the presidential race, Donald Trump’s team is considering pairing Kevin Warsh, a former Federal Reserve governor Kevin Warsh for Treasury Secretary and hedge fund manager Scott Bessent as director of the White House’s National Economic Council, according to Bloomberg News.

The stocks in the US closed higher on Monday led by gains in the teach-heavy Nasdaq as Tesla Inc. jumped 5.6% on a favorable news with a new Trump policy. According to news reports, Trump's team informed advisors that they intend to prioritise the Transportation Department's federal framework for fully self-driving vehicles.

The Nasdaq 100 outperformed after its longest rout since January. The S&P 500 and the tech-heavy Nasdaq Composite rose 0.39% and 0.60%, respectively, while the Dow Jones Industrial Average declined 0.13%.

Bonds rose across the US curve, while all eyes will be on Nvidia's quarterly report due Wednesday.

Crude oil prices remained mixed with the Brent crude trading 3.18% higher at $73.30 a barrel as of 6:00 a.m. IST, and the West Texas Intermediate down 0.33% at $68.93.