Asian stocks hesitant before Nvidia results, oil slips

Asian markets showed hesitation before Nvidia's earnings release, as oil prices dropped and bond yields fell. The Nikkei in Japan and Korea's Kospi both declined slightly. Investors were focused on the Strait of Hormuz, which could potentially reopen, and Iran's renewed talks with Oman to manage the strategic waterway. Brent crude futures fell by more than 2%, reaching $86.41 per barrel, as hopes grew for increased supply through the strait, which handles a fifth of the world's traded oil.

Despite no progress in the Iran-Oman deal, markets appeared to be pricing in optimism. Nvidia's earnings report was a key focus for investors, with analysts uncertain whether the company would beat expectations and whether strong guidance would keep earnings expectations rising. Analysts expect Nvidia to report an 82.8% increase in third-quarter sales to $104.20 billion.