Asian Markets Await Nvidia Earnings as Oil Prices Drop Over 2% on Hormuz Strait Negotiations
Nashnova编辑部
Asian stocks traded cautiously on Wednesday as Brent crude fell for a third straight day — down over 2% — after Iran and Oman restarted Strait of Hormuz talks. The oil drop pulled bond yields lower, but the real test comes tonight: whether Nvidia's quarterly results can validate the market's AI-spending thesis.
Why did oil suddenly drop?
Brent crude fell over 2% to $86.41 a barrel, its third consecutive daily decline.
The trigger: Iran and Oman resumed talks on managing the Strait of Hormuz, agreeing to discuss a temporary joint shipping corridor and joint mine-clearing.
JPMorgan analysts noted the agreement has no substantive progress or details yet — Iran reiterated the strait stays closed until conditions are met. This means → oil fell on the mood shift from "talks are happening," not on any real reopening.
How does cheaper oil reach the bond market?
Lower oil prices directly cool inflation expectations. The U.S. 10-year Treasury yield fell to 4.634% on Wednesday, after dropping 6.5 basis points the day before.
In plain terms = oil gets cheaper → the market thinks inflation is less fierce → bond prices rise, yields fall.
This reflects how heavily the market's inflation pricing depends on a single variable — energy. If Hormuz talks collapse, this logic reverses fast.
What exactly is the market nervous about with Nvidia?
Analysts expect Nvidia's Q3 revenue guidance to rise 82.8% year-on-year to $104.2 billion, with adjusted gross margins holding near 75%.
Saxo's chief investment strategist Charu Chanana noted: the question is not whether Nvidia beats estimates — it is by how much, and whether guidance is strong enough to keep driving earnings revisions higher.
This means → "beating estimates" is already the market's default script. A narrow beat could actually pressure the stock. Options data show the expected post-earnings move is smaller than prior quarters — the market sees results as increasingly predictable.
How are Asian markets performing?
The MSCI Asia-Pacific ex-Japan index edged up 0.12% in early trade, with a month-to-date gain of about 2%.
Japan's Nikkei 225 fell 0.4%; South Korea's KOSPI shed 0.2%. Nasdaq futures slipped 0.5%; European equity futures were flat.
India stood out: GIFT Nifty futures traded at 24,557.5, above Tuesday's close, pointing to a higher open. Foreign portfolio investors were net buyers for a second straight day, adding ₹15.94 billion (roughly $167.1 million).
Where do the dollar and safe havens stand?
The dollar index stood at 98.934, down about 1% since August, as markets awaited U.S. inflation data later in the day and the Jackson Hole central-bank symposium this weekend.
Spot gold traded at $4,646.08 an ounce, near a three-month high. Bitcoin rose 0.6% to $78,704.
CBA economist Kristina Clifton noted that the U.S. Treasury's expanded buyback program "can marginally lower overall interest costs" — but the fundamental issue remains: outstanding U.S. government debt keeps climbing, alongside concerns about fiscal dominance and Fed independence.
Content is for reference only, not financial advice.