Photo: Kakidai / Wikimedia Commons (CC BY-SA)
Asian markets head into Wednesday with one event towering over everything else on the calendar: the Federal Reserve’s interest rate decision, due at 2 p.m. Eastern time. Wall Street handed the region a positive lead on Tuesday. The S&P 500 rose 0.6 percent to close at 7,722.60, and the Nasdaq Composite climbed 1.2 percent to 26,477.81, as technology stocks extended their rally. The Dow Jones Industrial Average finished nearly flat at 52,377.57.
The momentum was clearest in Tokyo. The Nikkei 225 jumped about 1.7 percent on Tuesday to close at 63,268.37, its strongest level in weeks, with chipmakers and technology names leading the way. South Korea’s Kospi surged about 3.1 percent to 5,638.34, lifted by the country’s big semiconductor producers. A day earlier, artificial intelligence company Anthropic filed the paperwork for its planned stock market listing.
Greater China went the other way. Hong Kong’s Hang Seng Index slipped about 0.7 percent to 23,041.32, and the Shanghai Composite fell about 1.3 percent to 3,648.30, as mainland stocks gave back part of their recent gains. Australia’s S&P/ASX 200 opened Wednesday’s session higher, up about 0.5 percent near 8,895 in early trade.
Oil kept easing. U.S. crude traded near $100 a barrel late Tuesday, extending its decline from last week’s highs after Saudi Arabia’s defense minister met Iran’s president in Tehran, a rare high-level contact that traders read as a step away from confrontation. The dollar bought about 157.98 yen, little changed, with the Bank of Japan’s own rate decision coming Thursday.
Closer to home, Israelis went to the polls on Tuesday in an election that exit polls say has produced no clear winner, setting up weeks of coalition bargaining. The shekel held near 3.06 to the dollar as currency traders waited for the final count.
For ordinary households, the pieces fit together simply. Cheaper oil means relief at the gas pump and lower shipping costs, which over time shows up in store prices. The Fed’s benchmark interest rate currently stands at 3.75 to 4.00 percent, and Wednesday’s decision, due at 2 p.m. Eastern with a press conference to follow, will show whether borrowing costs on credit cards, car loans and mortgages come down or stay where they are.
This week: the Fed’s decision and press conference on Wednesday, followed by results from Microsoft and Alphabet after the U.S. close. The Bank of Japan decides on Thursday, the same day Amazon reports. ExxonMobil and Chevron report on Friday, Tokyo inflation lands Friday morning, and China’s monthly factory surveys close out the week on Saturday.
JBizNews Desk | New York
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