Market Commentary: Wednesday 27th August

Technology stocks in Asia rose in anticipation of Nvidia Corp.’s earnings, seen as a key indicator of chip demand and the sustainability of the global stock rally that began in April.

The focus on artificial intelligence (AI) intensified, with Chinese AI leader Cambricon Technologies Corp. surging 10% to a record high after reporting strong profits, while Nikon Corp. jumped 21% amid speculation that EssilorLuxottica SA will increase its stake.

A regional tech index gained up to 0.7%, and U.S. and European equity futures also advanced.

In China, industrial profit declines slowed, and the yuan hit its strongest level since November. U.S. business equipment orders exceeded expectations, signaling robust investment despite trade and tax uncertainties, though consumer confidence dipped slightly.

Trump’s 50% tariff on Indian goods, aimed at punishing India for Russian oil purchases, added geopolitical complexity, with Indian markets closed for a holiday.

Meanwhile, the dollar strengthened slightly, recovering from losses tied to President Trump’s push to remove Federal Reserve Governor Lisa Cook. Gold dipped 0.6%, Treasuries stabilized, and oil prices held steady after new U.S. tariffs on India took effect.

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