Asian Stocks Steady Ahead of Nvidia Earnings; Fed Turmoil Weighs on Sentiment

Asian markets were subdued Wednesday as investors awaited Nvidia’s earnings report, a potential catalyst for near-term risk sentiment. The U.S. dollar wavered amid mounting unease over political attacks on Federal Reserve independence.

Europe: Euro Stoxx 50 futures pointed to a firmer open, though French political uncertainty lingers after Prime Minister François Bayrou’s failed bid to push through a debt-reduction plan, following last year’s ousting of Michel Barnier in a no-confidence vote.

United States: Treasury yields steepened as markets digested President Trump’s unprecedented move to fire Fed Governor Lisa Cook—a decision now heading for a legal battle. The two-year yield briefly hit its lowest since May at 3.654%, before edging up to 3.661%, while the 30-year rose to 4.922%. Traders now price an 84% chance of a September Fed rate cut, with over 100 bps of easing expected by mid-2026.

Currencies: The dollar steadied in Asian trade. The euro slipped 0.2% to $1.1618, while the yen weakened to 147.87 per dollar.

Equities: MSCI’s Asia ex-Japan index was flat, but Chinese blue-chips climbed to a three-year high, led by tech. Nvidia shares remain in focus, with options markets bracing for a $260 billion swing in value post-earnings, amid scrutiny of its China business and U.S. tariff talks.