US Dollar Gains as Iran Tensions, Fed Rate Hike Bets Rise 
Japan Executives Warn Weak Yen and Currency Volatility Threaten Economy 
Australian Shares Fall as Westpac Slides, Miners Gain Ahead of RBA Decision 
Japan Posts First Current Account Deficit in 17 Months as Dividend Payments Surge 
Goldman Sachs Sees US Stock Buybacks Outpacing Equity Issuance as AI Funding Rises 
Asian Stocks Rise as Weak US Jobs Data Eases Fed Rate Hike Bets 
US Dollar Near Two-Month Low as Markets Await Inflation Data 
Trump Unveils $3 Billion U.S. Critical Minerals Push 
Iran-Oman Near Strait of Hormuz Deal as Shipping Tensions Persist 
China Exports Beat July Forecasts as AI Demand Fuels High-Tech Trade 
China Trade Surplus Beats Forecasts in July as Exports Stay Strong 
Canada, US Hold Constructive Trade Talks as Tariff Negotiations Continue 
US Job Growth Seen Picking Up in July 
Asian Stocks Mixed as Chip Selloff Hits KOSPI, Nikkei Ahead of US Jobs Data 
South Korean Won Leads Asian FX Losses as Dollar Rises 
US Yen Intervention Unlikely to Deliver Lasting Recovery, Yardeni Says 
Asian stock markets mostly moved higher on Wednesday, led by gains in Japan and Singapore, as investors awaited the U.S. Federal Reserve’s latest policy decision. Strong performance in technology and semiconductor stocks helped support regional markets, although caution ahead of the Fed meeting limited broader gains.
Japan’s Nikkei 225 index climbed 0.6%, remaining close to its recent record high above 70,000 points, while the broader TOPIX index gained 0.75%. Technology, semiconductor, and industrial shares led the rally amid continued optimism surrounding artificial intelligence (AI) demand. Recent trade data showed that exports of AI-related electronics and semiconductor products contributed to robust export growth in May, helping Japan record a smaller-than-expected trade deficit.
Despite the positive market sentiment, SoftBank Group shares fell as much as 5% after reports suggested that OpenAI, one of the company’s major investments, continues to face significant operating costs and ongoing losses related to its advanced AI models.
Japanese equities largely shrugged off the Bank of Japan’s recent 25-basis-point interest rate increase. The central bank also indicated that further rate hikes remain possible as it addresses inflationary pressures driven by energy costs.
Elsewhere in Asia, Singapore’s Straits Times Index surged more than 1% to a new record high. The rally followed stronger-than-expected growth in non-oil domestic exports during May, supported by rising global demand for AI-related electronic products.
Australia’s ASX 200 advanced 0.5% after the Reserve Bank of Australia left interest rates unchanged, a move widely anticipated by markets. In China, the CSI 300 index edged up 0.3%, while the Shanghai Composite slipped 0.1%. Hong Kong’s Hang Seng Index declined 0.75% amid concerns over weaker Chinese economic data released earlier in the week.
South Korea’s KOSPI traded mostly flat after recent volatility in semiconductor stocks. Meanwhile, futures linked to India’s Nifty 50 rose 0.6%, signaling a positive market opening.
Investors remain focused on the Federal Reserve’s policy announcement. While rates are expected to remain unchanged, market participants are closely monitoring economic projections and guidance on future interest rate moves. Attention is also turning to a planned memorandum of understanding between the United States and Iran, which could help ease geopolitical tensions and reopen the strategically important Strait of Hormuz.
