(Bloomberg) — Asian equities were set to climb Friday following gains on Wall Street as investors shook off initial concerns over Nvidia Corp.’s revenue outlook. Bitcoin edged closer to $100,000 while the dollar gained.
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Equity futures for Japan, Australia and Hong Kong all advanced. An index of US-listed Chinese stocks fell 1% Thursday, running against the grain of trading in New York but partly reflecting selling in Hong Kong stocks in their most recent session.
The S&P 500 and Nasdaq 100 both rose Thursday. Nvidia ended higher and even touched a fresh intraday record in a sign investors re-calibrated initial concerns over its revenue outlook. The company assured investors that its new product lineup will continue to fuel an artificial intelligence-driven growth run.
“The guidance seems to show lower growth, but this may be Nvidia being conservative,” said Alvin Nguyen, an analyst at Forrester Research Inc. “Short term, there is no worry about AI demand. Nvidia is doing everything they should be doing.”
Bitcoin set a fresh high, climbing past $98,000 on bets President-elect Donald Trump’s support for crypto and a looser regulatory environment will usher in a boom for the industry. A Fox Business News report suggested Chris Giancarlo, a former chairman of the Commodity Futures Trading Commission, was being weighed as the first “crypto czar” under the incoming administration.
Treasury yields rose across the curve Thursday. The policy-sensitive two-year yield climbed three basis points to end the session at the highest level since July. Federal Reserve Bank of Chicago President Austan Goolsbee however, said he sees interest rates moving “a fair bit lower,” expressing confidence inflation is easing toward the central bank’s objective.
Mixed US labor data added to the debate as jobless claims came in lower than expected while continuing claims, a gauge of the number of people receiving benefits, rose to a three-year high.
Upward pressure on yields supported an index of the dollar. The greenback climbed against most major currencies Thursday with the yen a standout exception. The Japanese currency strengthened 0.6% against the dollar Thursday.
Elsewhere in Asia, investors will be monitoring the fallout from a US indictment against Gautam Adani over allegations of bribery. Shares of Adani Group units tumbled and the conglomerate scrapped a $600 million dollar bond sale. The company denied the allegations.
Geopolitical Storm
Geopolitical tensions continued to simmer as Russia said it had launched a new kind of ballistic missile into Ukraine, giving oil and gold prices a boost. West Texas Intermediate, the US oil price, rose almost 2% while gold rose for a fourth session.
“Geopolitics always has a potential of introducing volatility in the market and we have seen that with what is happening in Ukraine,” Themis Themistocleous, chief investment officer, EMEA at UBS Wealth Management told Bloomberg Television. “We have been advising clients to include oil into their portfolio, or derivatives of oil, to be able to hedge against potential volatility.”
Elsewhere, strategists at market research firm Fundstrat expect US stocks to climb into the US holiday week, followed by some weakening in December.
“The Nvidia earnings report leaves the likelihood of a Thanksgiving rally intact,” they wrote. “The AI trajectory has not changed all that much, but the market’s immediate reaction is less important than the fact that the uncertainty over Nvidia’s results is behind us.”
Meanwhile, some of the anxiety in Washington over Trump’s pick for the top post at the US Treasury may be easing. The race has narrowed down to three front-runners – hedge fund manager Scott Bessent, private equity executive Marc Rowan and former Federal Reserve board member Kevin Warsh, according to according to BMO’s Ian Lyngen.
Key events this week:
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Eurozone HCOB Manufacturing & Services PMI, Friday
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US University of Michigan consumer sentiment, S&P Global Manufacturing & Services PMI, Friday
Some of the main moves in markets:
Stocks
Currencies
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The Bloomberg Dollar Spot Index rose 0.2%
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The euro was little changed at $1.0477
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The Japanese yen was little changed at 154.52 per dollar
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The offshore yuan was little changed at 7.2554 per dollar
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The Australian dollar was unchanged at $0.6511
Cryptocurrencies
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Bitcoin rose 0.1% to $98,202.01
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Ether rose 0.5% to $3,365.68
Bonds
Commodities
This story was produced with the assistance of Bloomberg Automation.
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