Asian equities posted mixed results on Wednesday as investors awaited the U.S. Federal Reserve’s upcoming interest‑rate decision, which Fed Chairman Kevin Warsh will address later in the session, alongside the anticipated signing of a U.S.-Iran interim peace pact.
The signing of a memorandum of understanding in Switzerland is expected to initiate a 60‑day negotiation window aimed at resolving long‑standing diplomatic challenges between the United States and Iran.
The agreement could quickly restore Iranian oil exports, inject capital into its economy, and start a staged easing of sanctions contingent on nuclear restrictions.
In the meantime, the Fed is likely to maintain current rates amid lingering inflation worries. Markets are closely watching Kevin Warsh’s first Federal Open Market Committee press conference for forward guidance.
The U.S. dollar dipped during Asian trading, while gold remained largely unchanged at $4,330 per ounce. Brent crude futures slipped toward $78 a barrel on expectations that the emerging U.S.-Iran de‑escalation could reopen the Strait of Hormuz for unrestricted oil and gas flow.
China’s Shanghai Composite Index edged 0.40% higher, finishing at 4,108.08 after a volatile session.
Hong Kong’s Hang Seng Index slipped 0.74% to 24,312.16, while HSBC shares rose 1.4% after the bank disclosed plans to deploy Google Cloud’s artificial‑intelligence technology across its global operations.
Japanese markets rose as data revealed that May exports surged at their fastest pace since November 2022, driven by robust demand for automobiles and high‑tech goods.
Core machinery orders climbed 8.7% in April, surpassing expectations and signaling continued strength in capital investment.
The Nikkei Average jumped 0.72% to 69,902.25, marking its third consecutive record‑high close. The broader Topix Index advanced 0.55% to 4,013.23.
Seoul equities extended their fifth straight session of gains as declining oil prices eased inflation pressures. The KOSPI rallied 1.58% to 8,864.24, buoyed by technology‑sector advances.
Market leaders Samsung Electronics edged up about 1%, while SK Hynix surged 5.8% to hit a fresh record.
Australian markets closed at a two‑month high, led by gains in banking and mining sectors. The S&P/ASX 200 rose 0.54% to 8,966.30, and the broader All Ordinaries Index climbed 0.60% to 9,185.90.
Across the Tasman, New Zealand’s S&P/NZX‑50 slipped 0.25% to 13,392.98, erasing earlier gains ahead of the upcoming Q1 GDP release.
Overnight, U.S. stocks finished mixed as markets awaited finalization of the U.S.-Iran peace accord. The Dow Jones Industrial Average edged 0.6% higher, touching a fresh record as easing inflation and rate concerns persisted, following U.S. officials’ indication that the interim deal would reopen the Strait of Hormuz for toll‑free commercial traffic by Friday.
Treasury yields declined and oil prices hovered near three‑month lows after The Wall Street Journal reported that the United States will permit Iran to resume oil exports immediately, reflecting a major shift in sanctions policy.
The tech‑heavy Nasdaq Composite slipped 1.2%, while the S&P 500 fell 0.6%, both pressured by declines in semiconductor shares.
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