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Asian stocks open in narrow ranges after US rallyEquities were mixed in Japan while they crept lower in Australia. US contracts were little changed after chipmakers led Tuesday’s rally on Wall Street, following news Nvidia Corp. and Advanced Micro Devices Inc. will supply semiconductors to Saudi Arabian firm Humain for a data-center project.By Bloomberg  May 14, 2025, 6:30:56 AM IST (Published)3 Min ReadAsian stocks traded in narrow ranges early Wednesday after US benchmarks wiped out their 2025 losses on signs the global trade war is cooling and after US inflation climbed less than forecast.

Equities were mixed in Japan while they crept lower in Australia. US contracts were little changed after chipmakers led Tuesday’s rally on Wall Street, following news Nvidia Corp. and Advanced Micro Devices Inc. will supply semiconductors to Saudi Arabian firm Humain for a data-center project.

Asian investors will be on the watch for Chinese tech stocks as the nation’s most valuable company, Tencent Holdings Ltd. will announce its earnings on Wednesday, and Alibaba Group Holding Ltd. will report its results the following day.

The easing of trade tensions and a surprisingly positive US earnings season have spurred optimism after a period of doubt about Corporate America’s ability to meet high profit expectations. The stock market is “gonna go a lot higher,” President Donald Trump said, citing an “explosion of investment and jobs” as he said Saudi Arabia would commit to investing $1 trillion in the US.

The Trump administration plans to overhaul regulations on the export of semiconductors used in artificial intelligence, tossing out a Biden-era approach that had drawn strenuous objections from America’s allies. The US is also weighing a deal that would allow the United Arab Emirates to import more than a million advanced Nvidia chips, people familiar with the matter said.

The S&P 500 closed 0.7% higher on Tuesday, while the Nasdaq 100 climbed 1.6%. The Bloomberg Magnificent Seven index of megacaps added 2.2%.

Subdued Inflation

US inflation rose by less in April than economists forecast amid tame prices for clothing and new cars, suggesting little urgency so far by companies to pass along the cost of higher tariffs to consumers.

The temporary agreement reached over the weekend to de-escalate the trade war with China has largely scaled back projections of how much damage tariffs will inflict on the economy. JPMorgan Chase & Co. boosted its forecast for US growth, dropping its earlier call that the world’s largest economy would sink into a recession in 2025.

While derivative contracts continue to price in two quarter-point rate cuts by the Fed this year, several major Wall Street banks this week forecast a rate cut in December, later than they previously anticipated.

“Like the Fed, investors are likely to look through today’s report as the prospect of trade deals and details on the budget reconciliation process are more material drivers for equities in the coming weeks,” said Josh Jamner at ClearBridge Investments. “However, the absence of a negative with today’s print does lend to incremental upside for risk assets as hedges are unwound.”

The reprieve in US-China trade tensions that sent stocks soaring has chart watchers anticipating fresh all-time highs for the S&P 500. According to John Kolovos, chief technical strategist at Macro Risk Advisors, there are now no more major resistance levels left until 6,144, the record hit on Feb. 19.

“The S&P 500 trading above the 200-day moving average is another indication that the trend is turning positive,” Kolovos said. “This increases the odds that pullbacks will be met with increased demand or buying interest. It changes your strategy and sends the signal that we’re done with the bear market.”

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