Key Points
- US GDP growth is forecast at 3.3% annualised for Q3, easing slightly from the prior quarter.
- NVIDIA shares rose after plans to ship AI chips to China before mid-February.
Asian equities advanced on Tuesday as momentum buying extended into the holiday period. Traders positioned cautiously ahead of an advanced reading on US third-quarter GDP, while thin liquidity amplified price moves across risk assets.
The upbeat tone followed gains in precious metals and selective strength in equities, as markets looked past near-term uncertainties.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.31% in early trade, while Japan’s Nikkei added 0.1%.
In the US, S&P 500 futures were little changed, while Nasdaq futures edged 0.11% higher, reflecting selective demand for growth-linked names.
NVIDIA Gains on China Chip Shipment Plans
Overnight, shares of Nvidia rose after Reuters reported the company aims to start shipping its second-most powerful AI chips to China before the Lunar New Year holiday in mid-February next year.
The update alleviated concerns about supply constraints and regulatory limits, providing support to the stock despite ongoing geopolitical tensions.
US Growth Seen Holding Firm Despite Headwinds
Tuesday’s key macro focus rests on US third-quarter GDP data. Expectations are for annualised growth of 3.3%, a modest slowdown from the previous quarter.
The pullback partly reflects weaker imports following an earlier surge ahead of tariff implementation.
Technical Analysis
NVIDIA is staging a modest recovery after a period of steady decline from the November high of 212.1. The stock is currently attempting to regain bullish momentum, trading just below the short-term resistance at 183.47.
The price has crossed back above the 5- and 10-day moving averages, but the broader trend remains mixed. The 30-day moving average remains relatively flat, indicating consolidation rather than a full-fledged bullish reversal.
The recent gains are encouraging but require follow-through above 185–190 to confirm a breakout from the consolidation range.
The MACD (12,26,9) shows signs of a possible bullish crossover forming, but it is still hovering close to the zero line. The histogram is flattening, which suggests momentum is cautiously shifting back to the upside.
Cautious Outlook as Data and Liquidity Drive Moves
With US GDP data due and more delayed economic releases expected in the coming days, markets may remain sensitive to surprises.
Thin holiday liquidity could exaggerate swings, particularly in equities and FX. Risk assets may stay supported if growth data aligns with the 3.3% forecast, while any downside surprise could quickly temper the current upbeat tone.
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