NVIDIA’s strong guidance drives a broad rebound in the S&P 500 and Nasdaq 100, lifting Japan, Singapore, and Australia indices, while the JPY weakens.
US futures rebounded on Nvidia’s upbeat earnings, JPY sank to a 10-month low
Key takeaways
- Nvidia’s earnings and strong forward guidance helped stabilise US stocks, triggering a broad intraday rebound in the S&P 500 and Nasdaq 100 and lifting several Asia-Pacific equity markets.
- A firmer US dollar and continued weakness in the Japanese yen reflect expectations of looser policy under the “Takaichi Trade” and reduced odds of a near-term BoJ rate hike.
- The USD/JPY surged to a 10-month high above 157, while the performance of regional equities diverged, with Japan, Singapore, and Australia rallying, but Hong Kong lagging.
The current bout of weakness seen in the US stock market over the past two weeks has started to stabilise, thanks to upbeat earnings and revenue guidance from Artificial Intelligence (AI) juggernaut NVIDIA.
NVIDIA reported third-quarter earnings ($1.30 EPS versus $1.25 consensus) and revenue ($57.01 billion versus $54.92 billion consensus) that topped Wall Street expectations on Wednesday, providing stronger-than-expected sales guidance for the fourth quarter.
NVIDIA expects about $65 billion in sales in the current fourth quarter, versus $61.66 billion expected by analysts.
In today’s Asia session, the S&P 500 and Nasdaq 100 E-mini futures extended their overnight gains with intraday rallies of 1.3% and 1.8% respectively, at the time of writing.
The intraday bullish reversal seen in US stock indices triggered a positive reflexivity feedback loop into most Asia-Pacific stock markets despite a firmer US dollar.
Japan’s Nikkei 225 snapped its three-day consecutive losses with a gain of 2.65%, its best daily return in the past four weeks. Australia’s ASX 200 rebounded by 1.2% to 8,553 after a retest early on its key 200-day moving average at around 8,500. Singapore’s Straits Times Index made an uptick of 0.2% to trade at 4,513 intraday, right above its 20-day moving average, which is acting as a key intermediate support at 4,480. In contrast, Hong Kong’s Hang Seng Index dropped by 0.3%.
In the FX market, the US dollar continued to trade on a stronger footing, with a 0.5% gain seen on the US Dollar Index on Wednesday, November 19. In today’s Asia session, the US Dollar Index extended its rally further by 0.2% to trade at 100.30, just a whisker below a medium-term resistance of 100.55.
The current firmer US dollar has been attributed to a significant downside movement of the Japanese yen, amplified by the “Takaichi Trade”, a policy mix of aggressive fiscal expansion and a preference for lower interest rates in Japan.
The USD/JPY shot passed the 156.00 psychological level “easily” on Wednesday, 19 November, and rallied by 1.1% to close the US session at 157.17. The downbeat mood of the yen continues in today’s Asia session as USD/JPY extends its intraday gains by 0.3% to trade at a 10-month high of 157.70.
A member of a key panel advising Japanese Prime Minister Takaichi stated that the Bank of Japan (BoJ) is unlikely to raise its benchmark interest rate before March 2026, significantly reducing the odds of an interest rate hike in the upcoming monetary policy meeting in December.
Our YouTube video above contains the latest intraday technical analysis on the US Wall Street 30, US Nas 100, US SPX 500, Hong Kong 33, Japan 225, Germany 30, EUR/USD, GBP/USD, AUD/USD, USD/JPY, Gold (XAU/USD), and West Texas Oil.
