Mixed trend in Asia; The Nikkei is down about 1%

Trade overview: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations

08:36

This morning in Asia, the main indexes are trading by the hour in a mixed trend. The Nikkei loses 0.6%, the Hang Seng gains 0.2%, the Shanghai Stock Exchange trades around base levels and the Kospi gains 0.1%.

US futures are trading slightly higher at this time.

Last night on Wall Street (Tuesday), the trading day closed with slight gains. The Nasdaq rose 0.2% and again broke its all-time high when it traded at 18,713 points. The Dow Jones rose by a similar rate and the S&P 500 added 0.3% to its value.

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Investors’ eyes are on the chip giant’s financial results Nvidia which is expected to publish its reports this evening (Wed) at the end of trading on Wall Street. According to estimates, Nvidia is expected to continue breaking records and presenting impressive results. At the same time, this morning CNBC reported that Dan Niles, founder of Niles Investment Management, estimates that Nvidia’s revenues will increase three to four times over the next three to four years, and in his estimation this will be reflected in the stock’s performance.

At the Bernstein asset management company, they add: “Google, Amazon, Microsoft, Meta and Apple are expected to spend 200 billion dollars this year, with a huge part of the expenses going to specific infrastructures for artificial intelligence such as Nvidia chips.” They also add that OpenAI relies on Nvidia’s technology for its latest chatbot, and in March Meta announced plans to buy and build computers that will include about 350,000 Nvidia GPU processors, at a cost of billions of dollars.

Another technology giant that focuses this morning’s interest is Dark . Earlier it was reported that Steve Eisman, the hedge fund manager who predicted the sub-prime crisis, estimates that Apple is the technology giant expected to generate the highest profits from the field of artificial intelligence.

“Everyone is focused on the cloud,” Eisman says. “But when the applications appear, the biggest beneficiary will probably be Apple, because it is the one that will be able to refresh all its products with the help of the royal intelligence tool.” He further explains that: “When there are applications from the field of artificial intelligence that the consumer can use, he will want to use them on the phone,” Eisman said. “I have a new iPhone, and I know for a fact that when all these apps come to my phone, I’m going to need a new phone, and I’m going to need a new iPad, and I’m going to need a new laptop.”

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In the American debt market, government bond yields are trading slightly higher this morning. The yield on two-year bonds is trading around 4.83% and the 10-year yield is at 4.42%.

In the oil market, despite expectations of price increases due to the death of the Iranian president, the trend is actually down. The price of Brent oil fell on Tuesday by about 0.8% to 83.2 dollars per barrel, and the American one traded at 79.2 dollars. Some in the market estimate that the high interest rates in the US are reducing consumer and industrial demand for oil, along with the fading of fears of a wider war in the Middle East.

Investment manager Blackrock’s research unit commented in its review of Japanese stocks, “We maintain an optimistic outlook on Japanese stocks, with an overweight allocation and a preference for unhedged exposure over currency hedging. This strategy is backed by a positive macroeconomic environment, which includes a return to inflation and rising wages, which That is expected to have a positive effect on profits and margins for Japanese companies as they can now raise prices to offset rising wages.Furthermore, rapid wage growth could bolster consumer spending, completing a positive cycle between wages and inflation The interest rate for the first time in 17 years emphasizes confidence in Japan’s economic recovery.”

Blackrock also added, “In terms of investment prospects, the estimated returns for Japanese stocks over the next five years are driven primarily by earnings growth and steady dividend growth, with the potential for revaluation in certain scenarios. While operating margins have remained stable over the past two decades, forecasts point to higher sales growth In the next decade, supported by historical trends and GDP growth estimates.”

Looking ahead, BlackRock says, “Understanding the mega-forces shaping the economy such as demographic trends, geopolitical shifts, digital disruption and low-carbon emissions reductions is essential. Japan’s aging population and shrinking workforce pose challenges, but the healthcare sector continues to show consistent earnings growth. Meanwhile, Japan Focuses on productivity benefits through technological innovation, manifested in increased capital expenditures on digitization, semiconductors and electric vehicles.”