Nvidia Earnings Loom as Asia Markets Rally on Fed Optimism

Asia Starts the Week on a High Note

Asian markets kicked off the week with solid gains, lifted by renewed optimism that the U.S. Federal Reserve may soon pivot to lower interest rates. Chinese blue-chip stocks were among the strongest performers, climbing to their highest levels in more than two years and setting a positive tone for the region.

Investor sentiment is being fueled by dovish signals from Fed Chair Jerome Powell, with traders now pricing in an 84% chance of a September rate cut. Futures markets also suggest the possibility of as much as 100 basis points of easing by mid-2026, a shift that has boosted appetite for risk assets across Asia.

Nvidia’s Earnings Could Set the Tone

Despite the upbeat momentum, one company is dominating global investor focus: Nvidia. Now valued at nearly $4 trillion, the chipmaker has become a barometer for the AI revolution.

Analysts expect 48% profit growth and around $46 billion in revenue in the upcoming quarterly report. Beyond the headline numbers, markets are seeking clarity on Nvidia’s ability to maintain shipments to China and the potential impact of a proposed revenue-sharing arrangement that could send 15% of certain sales back to the U.S. government.

With so much riding on its results, Nvidia’s earnings could either reinforce the AI-driven rally or trigger a wave of caution from Shanghai to Seoul.

Regional Performance Snapshot

• Japan’s Nikkei: +0.4%
• South Korea’s KOSPI: +1.1%
• Australia’s ASX: +0.2%
• Broader Asia indices: +1.5%

These moves underscore the twin forces shaping sentiment: optimism about Fed policy easing and uncertainty around whether Nvidia can keep justifying its sky-high valuation.

Why It Matters

The rally across Asia is being powered by the promise of easier monetary policy — but Nvidia’s upcoming results will be the real test. A strong showing could validate the AI boom and sustain market momentum. A disappointment, however, risks cooling the enthusiasm that has fueled one of the fastest-growing rallies in years.

In short, Asia’s markets are climbing, but their next move may hinge on what Nvidia reveals this week.