Asian markets exhibited a mixed performance on Wednesday, with Japan’s Nikkei 225 climbing 1.3% to 39,390.49, thanks to a surge in tech stocks that recently propelled the Nasdaq composite to a new high. The Bank of Japan also commenced a two-day policy meeting, fueling further market interest.
In contrast, Hong Kong’s Hang Seng index dropped 1.3% to 20,438.54, and the Shanghai Composite declined 0.6% to 3,267.42. Australia’s S&P/ASX 200 fell 0.9% to 8,177.90 after the Australian Bureau of Statistics reported a third-quarter inflation rate of 2.8%, the lowest in over three years. Meanwhile, South Korea’s Kospi slipped 0.8% to 2,596.61, while Taiwan’s Taiex saw a modest gain of 0.1%.
U.S. markets were buoyed by gains in major tech stocks, helping the S&P 500 rise 0.2% to 5,832.92 and the Nasdaq gain 0.8% to 18,712.75. However, the Dow Jones Industrial Average fell by 0.4% to 42,233.05.
Recent data on the U.S. economy, including a jump in consumer confidence, has led traders to temper expectations for further Fed rate cuts. As the Fed prioritizes economic stability alongside inflation control, there is a possibility it may maintain its current rate at its next meeting. Treasury yields have also been influenced by shifting political odds, with Trump’s re-election prospects impacting inflationary outlooks.
Elsewhere, oil prices climbed, with U.S. crude reaching $67.57 per barrel and Brent crude hitting $71.09. The dollar traded lower against the yen and euro in early Thursday trading.