Asian markets were mostly higher on Wednesday as investors awaited guidance from the Federal Reserve on the timing of interest rate cuts. Oil prices and U.S. futures fell, adding to the uncertainty in the markets.
Japan’s markets were closed for a holiday, but on Tuesday, the Bank of Japan surprised markets by hiking its benchmark interest rate for the first time in 17 years. This move raised the rate to a range of zero to 0.1% from minus 0.1%, causing the U.S. dollar to rise against the Japanese yen.
In Hong Kong, the Hang Seng gained 0.3% while the Shanghai Composite index was up 0.5%. China left its benchmark lending rates unchanged, reflecting the delicate balance between economic improvement and a precarious property market.
In the U.S., the S&P 500 rose to a new all-time high, with the Dow Jones Industrial Average and the Nasdaq also posting gains. International Paper saw a significant increase in its stock price after naming a new CEO, while Unilever announced plans to spin off Ben & Jerry’s and cut jobs, leading to a rise in its shares.
On the losing end was Super Micro Computer, which saw a sharp decline in its stock price after announcing plans to sell shares. The focus on Wall Street was on the Federal Reserve, which is expected to leave interest rates unchanged but may hint at future rate cuts.
Overall, the markets are awaiting the Fed’s decision and any indication of future rate cuts, as recent reports on inflation have been worse than expected. This uncertainty is reflected in the fluctuating oil prices and currency exchange rates, adding to the volatility in the global markets.
