Asian Stocks Cautious Ahead of Nvidia Earnings as Oil Slips on Hormuz Hopes

Asian markets showed hesitant movement on Wednesday as oil prices dropped for a third consecutive day following reports that Iran restarted talks with Oman regarding the Strait of Hormuz. Wti crude fell more than 3% to $80.41 per barrel, reflecting cautious optimism that supply through the critical waterway, which handled a fifth of global oil trade before the conflict, could improve.

Bond Yields Ease as Markets Price in Optimism

The drop in oil prices helped push US 10-year Treasury yields lower, even though Iran maintained that the strait would remain closed until its conditions are met. Analysts noted that markets appear to be pricing in early optimism around a potential interim agreement, despite the lack of concrete details.

All Eyes on Nvidia’s Earnings Report

Investors across Asia remained cautious ahead of Nvidia’s second quarter earnings, with attention focused on whether the company’s strong growth in AI spending can be sustained. Analysts expect Nvidia to project an 82.8% rise in third-quarter sales, though some suggest the market reaction may be more measured than in previous quarters, given how closely results are expected to align with high expectations.