Asian equity markets fell again overnight despite two multibillion-dollar buyback announcements from Chinese companies. JD.com approved a share buyback of up to $5 billion over three years, while sportswear group Anta jumped as much as 12% after announcing a buyback worth up to $1.3 billion over 18 months. However, broader declines in the region came as weak corporate earnings in China renewed concerns about its economy. Bottled water maker Nongfu Spring Co. tumbled 13% after posting the slowest profit growth in four years, one of many companies that have reported disappointing results.
Australian inflation eased to 3.5% in July as government energy rebates for households reduced electricity prices. The “trimmed mean” inflation rate, which strips out volatile elements, fell to 3.8% from 4.1%. This is still above the 2%-3% target range, and many economists have suggested the country’s central bank would not be moved to cut interest rates. The Australian Dollar was steady against the US Dollar after initially rising 0.3%.
The Yen extended losses to 0.4% against the dollar following comments from BoJ Deputy Governor Ryozo Himino, who suggested the central bank will raise rates as long as inflation moves in line with the bank's view, stating they will monitor developments with the "utmost vigilance."
In crypto markets, Bitcoin fell below the $60,000 level early this morning as part of a broader crypto retreat, which also included a sharp drop in Ether. Oil held steady after sliding in its previous session, and gold retreated after a three-day rally that brought it closer to an all-time high.
Nvidia's results may prompt significant market moves when they are released later. The options market has implied a nearly 10% move in either direction. The $3.2 trillion company has gained 160% this year and 1,000% from its bear-market low in October 2022. Some analysts are suggesting greater than 70% revenue growth for the current quarter.
Data-wise, today we have Nvidia's earnings following the US market close, followed by the Fed's Raphael Bostic and Christopher Waller speaking at 11 p.m.
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