Asian stock markets are poised for gains today, buoyed by a rally on Wall Street sparked by Nvidia’s stellar earnings report and forward-looking optimism. This enthusiasm led to a significant 16% surge in Nvidia‘s stock, propelling the tech-centric Nasdaq Composite Index to a 3% increase. This positive momentum extended beyond the tech sector, with nearly 75% of S&P 500 companies also advancing, reflecting broad market confidence to add risk, especially to the microchips and AI space.
Looking forward, the economic agenda for Friday is light, but attention will turn to China’s housing price data, a critical indicator for the region. Chinese authorities are actively implementing strategies to navigate the complexities in the financial markets, particularly addressing the challenges of short-selling and speculative activities. The real estate sector in China is under scrutiny, given its considerable impact on the economy and the broader financial market dynamics in Asia. The downturn in construction activities has eroded household wealth and dampened investor confidence, adding to the region’s risk profile. A disappointing performance in the housing data could further dampen sentiment, as a robust recovery in China’s economy is closely tied to the stabilization of its real estate market. However, achieving this stability may be challenging in the short term without significant governmental intervention.
© 2019 High Leverage FX - All Rights Reserved.
© 2019 High Leverage FX - All Rights Reserved.