Asian stocks mixed as investors await Nvidia earnings

Asian markets traded unevenly on Wednesday, with investors shifting focus from political pressure on the US Federal Reserve to an earnings update from AI powerhouse Nvidia.

The region’s main indices struggled to find direction after Tuesday’s widespread declines in Tokyo, Hong Kong, Seoul, and elsewhere. Wall Street, meanwhile, managed modest gains as traders tried to look beyond President Donald Trump’s controversial decision to dismiss Federal Reserve governor Lisa Cook.

European markets were under pressure, with Paris tumbling on fears that France’s minority government could collapse. Prime Minister François Bayrou has proposed a confidence vote in an attempt to break a standoff over budget cuts.

By late morning in Asia, benchmarks in Hong Kong, Sydney, and Taipei posted slight gains, while Tokyo and Seoul traded flat. Shanghai and Bangkok edged lower.

Attention is now turning to California-based Nvidia, which will release its second-quarter results Wednesday evening. The company is seen as a bellwether for the AI-driven tech boom, and analysts expect revenue to jump 53 percent to $46 billion. “The crowd wants reassurance that the AI revolution isn’t just smoke and mirrors,” wrote Stephen Innes of SPI Asset Management.

Markets remain unsettled by Trump’s move to oust Fed governor Cook, who was accused by the president of false mortgage statements. Cook has rejected the claims, insisting Trump lacks the authority to remove her, while her lawyer has pledged a legal challenge. The action has stoked concerns about the Fed’s independence, already under scrutiny amid Trump’s repeated calls for chairman Jerome Powell to slash interest rates.

Powell signaled last week that further rate cuts could be coming, sparking a short-lived market rally. Investors are now watching Thursday’s US GDP update and Friday’s inflation data for more clues on the Fed’s next steps.

Meanwhile, oil prices extended Tuesday’s mild pullback as traders weighed prospects of a peace agreement between Ukraine and Russia, a key global crude supplier.

Key figures at around 0215 GMT

Tokyo - Nikkei 225: FLAT at 42,408.10
Hong Kong - Hang Seng Index: UP 0.2 percent at 25,586.68
Shanghai - Composite: DOWN 0.2 percent at 3,862.55
Euro/dollar: DOWN at $1.1627 from $1.1637 on Tuesday
Pound/dollar: DOWN at $1.3464 from $1.3475
Dollar/yen: UP at 147.70 yen from 147.45 yen
Euro/pound: DOWN at 86.35 pence from 86.36 pence
West Texas Intermediate: DOWN 0.1 percent at $63.21 per barrel
Brent North Sea Crude: DOWN 0.1 percent at $67.18 per barrel
New York - Dow: UP 0.3 percent at 45,418.07 (close)
London - FTSE 100: DOWN 0.6 percent at 9,265.80 (close)