Most Asian stock markets moved higher on Wednesday as technology and semiconductor shares provided lift, even as investors approached a Federal Reserve policy decision that kept a lid on broader upside. S&P 500 futures were firmer in Asian hours as markets prepared for the conclusion of a two-day meeting later in the day.
Nikkei close to record highs
Japan's Nikkei 225 was among the stronger performers, rising about 0.6% and trading close to a record level reached on Tuesday of just over 70,000 points. The broader TOPIX benchmark also advanced, up roughly 0.75%.
Strength in chipmaking and industrial stocks underpinned the moves in Tokyo, driven by optimism around ongoing artificial intelligence-related demand for electronics and semiconductors. Trade data released earlier in the day showed that AI-related electronics and semiconductor sales helped power strong export growth in May, contributing to a smaller-than-expected trade deficit for the month.
Not all Tokyo names participated evenly. SoftBank Group Corp. (TYO:9984) lagged the rally, sliding as much as 5% after reports indicated that OpenAI - a company in which SoftBank is a major investor - was facing mounting costs and persistent losses associated with operating its large AI models.
Regional picture - mixed gains
Across the region, moves varied. Singapore's Straits Times index jumped more than 1% to a record high, supported by a report showing non-oil exports in May expanded far more than expected and at the fastest pace in over 20 years, with robust AI-driven electronics demand cited.
Australia's S&P/ASX 200 rose about 0.5% after the Reserve Bank of Australia left interest rates unchanged on Tuesday, a decision widely anticipated by markets. In mainland China, the CSI 300 gained roughly 0.3% while the Shanghai Composite edged down about 0.1%.
Hong Kong's Hang Seng index underperformed regional peers, slipping around 0.75% following weak Chinese economic data published earlier in the week. South Korea's KOSPI traded largely sideways, pausing after a period of heightened volatility driven by swings in local chipmaking stocks.
Futures for India's Nifty 50 were firmer, up about 0.6%, while S&P 500 futures rose near 0.2% in Asian trade as investors focused on the Fed.
Federal Reserve meeting in focus
The US central bank was expected to hold interest rates steady at the conclusion of its two-day meeting, and market attention centered on the tone and guidance that would accompany the decision. Forecasters and market participants anticipated that the Fed would signal no immediate policy changes. Observers said emphasis would be placed on comments from Fed Chair Kevin Warsh on the economic outlook and the likely path for interest rates.
Geopolitical watch
Beyond central bank commentary, market participants were also monitoring developments on the geopolitical front. A memorandum of understanding between the United States and Iran is scheduled for signing on Friday; the agreement is described as intended to end hostilities and reopen the Strait of Hormuz. That event was cited as an additional focus for traders later in the week.
Market summary
- Nikkei 225: +0.6%, trading near record highs just above the level reached on Tuesday.
- TOPIX: +0.75%.
- Singapore Straits Times: surged over 1% to a record high.
- S&P/ASX 200: +0.5%.
- CSI 300: +0.3%; Shanghai Composite: -0.1%.
- Hang Seng: -0.75%.
- Nifty 50 futures: +0.6%; S&P 500 futures (in Asian trade): +0.2%.
The trading day reflected a cautious tone - headline moves were positive in many markets, but sizeable upside was constrained as investors awaited central bank signals and digested mixed economic and corporate news.