Asian markets look set for a positive open, supported by improved sentiment over potential Federal Reserve rate cuts and reports that US officials may permit the sale of Nvidia AI chips to China.
Futures indicate shares in Australia and Hong Kong will climb in early trading after the S&P 500 closed 1% higher on Friday. China’s benchmark may be buoyed by advances in a gauge of US-listed counterparts on Friday, while Japanese markets are closed for a holiday.
Risk sentiment improved on Wall Street after Bloomberg News reported US officials are having early talks on whether to let Nvidia sell its H200 artificial intelligence chips to China.
The market also got an injection of hope after Fed Bank of New York President John Williams suggested a near-term rate cut remains a possibility.
“Expect Asian markets to start on the front foot,” said Nick Twidale, chief market analyst at AT Global Markets. “But given the moves that we saw last week, and the potential for more volatility in the coming days, investors will be understandably hesitant to throw the kitchen sink on positive risk sentiment.”
