Asian stocks showed mixed performance on Wednesday as investors anticipated a potential interest rate cut by the Federal Reserve. While Australia's benchmark index reached a new high, U.S. futures declined and oil prices rose.
In Tokyo, the Nikkei 225 index initially rose but later fell by 0.4% to 41,097.69. Reports suggested that the Finance Ministry intervened in the currency market by purchasing nearly 6 trillion yen to support the yen. The U.S. dollar weakened against the Japanese yen.
Australia's S&P/ASX 200 surged by 0.7% to 8,057.90, hitting a record high of 8,083.70 during morning trading. South Korea's Kospi dropped by 0.8% to 2,843.29. Hong Kong's Hang Seng index increased by 0.2% to 17,761.66, while the Shanghai Composite index decreased by 0.3% to 2,967.32.
Elsewhere, Taiwan's Taiex declined by 1%, with Taiwan Semiconductor Manufacturing Company's stock falling by 2.4%. The SET in Bangkok saw a 0.2% increase.
The S&P 500 reached a new high of 5,667.20, climbing by 0.6%, marking the 38th record-setting day this year. The Dow Jones Industrial Average surged by 1.9% to 40,954.48, while the Nasdaq composite gained 0.2% to 18,509.34.
Some stocks that had surged the day before, following speculation about former President Donald Trump, experienced declines. Trump Media & Technology Group fell by 9.1% after a 31.4% jump. In the bond market, longer-term yields decreased more than shorter-term yields.
Yields have been easing due to expectations of slowing inflation, prompting predictions of a Federal Reserve interest rate cut in September. However, strong retail sales data may influence the Fed's decision. U.S. benchmark crude oil prices slightly increased to $79.72 per barrel, while Brent crude fell to $83.65 per barrel. The euro strengthened against the dollar.
