Asian shares took a pause on Tuesday after a seven-day winning streak, with Li Auto Inc.’s disappointing earnings report dampening investor sentiment. The region’s currencies also weakened against the dollar, adding to the cautious mood in the markets.
While Japanese stocks managed to edge higher, Chinese and Australian equities retreated, leading to a decline in MSCI’s all-country gauge after eight consecutive days of gains. Hong Kong’s stock market also saw a dip, with Li Auto being the biggest loser in the MSCI Asia Pacific index following its underwhelming first-quarter vehicle sales figures.
On the commodities front, gold and copper prices remained near their all-time highs, while wheat prices surged. The Bloomberg Commodity Spot Index reached its highest level since January 2023 on Monday.
The spotlight in Asia remains on China’s economic struggles, particularly in its debt-laden property sector. Fresh data revealed ongoing challenges in the sector, with local governments experiencing the lowest revenue from land sales in eight years last month.
Investors are now turning their attention to Nvidia Corp.’s upcoming earnings report, with expectations running high for the tech giant’s performance. The company is a key player in the artificial intelligence sector, and its results could have a significant impact on market sentiment.
Overall, the market remains cautious as Federal Reserve officials signal a less dovish stance on interest rate cuts. With key events and data releases scheduled for the week ahead, including Fed speeches, US home sales figures, and Nvidia earnings, investors are bracing for potential market-moving developments.