Asia: Stocks follow US gains, Nvidia probe looms
Attention now turns to US inflation data Tuesday for clues on the rate outlook
Asian markets opened higher on Monday, riding the wave of Friday's gains in US equities, but investors were cautious due to an ongoing probe involving Nvidia's CEO, Jensen Huang. The MSCI Asia Pacific Index rose 0.7%, while Japan's Nikkei 225 gained 1.9%. US semiconductor shares surged 4.2% on Friday as speculation surrounding potential tighter Democratic Party regulation of the artificial intelligence industry eased.
However, equity-index futures for the Nasdaq 100 Index slipped up to 1% after Nvidia's board announced an investigation into whether Huang had been targeted in a foreign espionage plot following his admission of infidelity. Brent crude prices fell 0.4% to around US$97.90 a barrel after US President Donald Trump stated he was "highly unlikely" to order further strikes on Iran if negotiations over the nuclear program and the reopening of the Strait of Hormuz yielded positive results.
The US dollar weakened against most of its Group of 10 peers, while New Zealand's currency strengthened following a recent national election. Bitcoin prices rose 1.3% to approach US$75,000. Analyst Nick Twidale of AT Global Markets warned that the "Nvidia honey trap" could weigh down Asian markets at the start of the week, creating significant uncertainty regarding the future of the AI giant, which is often considered the biggest player in the sector.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
