Macro update
Oil eases on Trump comments: Brent crude fell nearly 2% to around $107 a barrel after Donald Trump delayed a planned strike on Iran and said there was a “very good chance” of a nuclear deal, although prices remain more than 50% above pre-war levels.
Equities stay cautious: MSCI’s Asia-Pacific index ex-Japan dropped more than 1%, with South Korea’s Kospi down over 3%, while US futures slipped and European futures traded mixed as investors awaited firmer signs of de-escalation.
Nvidia test looms: Investors are focused on Nvidia’s results on Wednesday as a major test for the AI trade, with expectations elevated after technology stocks drove much of the rebound from March lows.
Japanese tech shares drag: The Nikkei reversed early gains to fall 0.6%, pressured by declines in Advantest, SoftBank, Tokyo Electron and Kioxia, even as stronger-than-expected GDP data supported banks and value stocks.
Bond selloff abates: Treasury and Japanese government bond yields eased after lower oil prices reduced immediate inflation concerns, though markets still see a risk of further central bank tightening if energy prices remain elevated.
Dollar steadies near 159 yen: The dollar regained ground on safe-haven demand, keeping traders alert to possible Japanese intervention, while sterling and the euro weakened, gold eased and bitcoin edged lower to around $76,000 before recovering.
