Asia-Pacific Markets Advance on Nvidia's Strong Earnings

Key Takeaways:

• Nvidia's upbeat earnings forecast for the first quarter has soothed concerns over AI-driven disruption and rising costs, leading to a surge in Asian stocks.
• The yen remains under pressure due to a murky rate outlook in Japan, with Japanese Prime Minister Sanae Takaichi's easy monetary policy preferences casting doubt on further Bank of Japan (BOJ) rate hikes.
• Lingering geopolitical tensions between the U.S. and Iran have kept oil prices elevated, with Brent crude futures up 0.27% at $71.04 a barrel.

Market Performance:

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• Japan's Nikkei reached a record high early in the session, while South Korea's KOSPI rose 2%.
• MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.7%.
• Nasdaq futures declined 0.25%, while S&P 500 futures fell 0.14%.
• EUROSTOXX 50 futures were up a marginal 0.06%.

Currency Markets:

• The yen was 0.2% stronger at 156.01 per dollar, but is down roughly 0.6% for the week.
• The dollar was on the back foot, with the euro up 0.12% at $1.1824, while sterling rose 0.08% to $1.3570.

Oil Markets:

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• Brent crude futures were up 0.27% at $71.04 a barrel, while U.S. crude rose 0.24% to $65.55 per barrel.
• Spot gold was up 0.27% at $5,184.66 an ounce, buoyed by some safe-haven demand.