Asian markets were subdued Wednesday as worries about high AI stock prices made investors cautious ahead of Nvidia’s earnings report.Nvidia has been a major driver of the global AI rally and is expected to report a 56% jump in revenue for the August–October quarter to $54.92 billion.”It looks like Nvidia’s stock price has been priced for perfection, so GPU demand must continue to grow strongly for many more years for the stock to stay up,” said Wong Kok Hoi, founder and CEO of APS Asset Management in Singapore, as quoted by Reuters.The cautious mood followed a weak session in the US, where the Nasdaq fell 1.2% and is now more than 6% below its late-October record. In Asia, S&P 500 and Nasdaq 100 futures were flat. Japan’s Nikkei rose 0.4%, while South Korea’s Kospi fell 0.8%.Expectations for a US rate cut in December also faded. Investors worry that falling approval ratings for President Donald Trump could lead to more government spending and higher inflation. US treasury yields dipped only slightly, with the 10-year yield steady at 4.11%. Markets now see about a 42% chance of a rate cut next month, down from near certainty a month ago.“If, and it’s an if, growth does turn down, will there be able to be as much fiscal support as there was during the pandemic or during the global financial crisis given governments’ fiscal positions are significantly worse now?” said Nomura chief economist Rob Subbaraman.In Japan, concerns over rising government spending pushed long-term bonds lower, sending yields to new highs. The benchmark 10-year yield reached 1.765%, the highest in 17 years. A 20-year bond auction later in the day will be closely watched.Crypto and commodities steadyBitcoin recovered to $92,000 after falling to a seven-month low on Tuesday, though it remains 27% below its October record.In currency markets, the dollar held firm. The yen weakened to 155.45 per dollar, close to levels that have prompted intervention warnings. The euro stayed at $1.1582, while the Australian and New Zealand dollars slipped.Gold traded at $4,066 after recent declines. Brent crude futures eased 35 cents to $64.51 a barrel. Soybeans hit a 17-month high after China made large purchases of US supplies.
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