Japan Private-Sector Growth Slows as Domestic Demand Weakens 
Dollar Hits Two-Month High as Fed Rate Hike Bets Rise 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
Mexico-US Trade Talks Delayed to October as Tariff Negotiations Continue 
Oil Prices Surge as U.S.-Iran Diplomacy Hopes Fade 
Asian Stocks Fall as Bond Yields Surge Ahead of Trump-Xi Summit 
Trump, Xi Focus on Trade and AI at White House Summit 
China’s ‘Lipstick King’ Says AI Won’t Replace Livestream Hosts 
US Dollar Hits Two-Month High as Fed Rate Hike Bets Rise 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
South Korea, US Discuss Warship Building Cooperation 
Soybean Futures Slip as Traders Await Trump-Xi Trade Signals 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
Russian Envoy Dmitriev Heads to US for Ukraine Talks 
Oil Prices Ease as Iran Tensions Clash With Diplomacy Hopes 
US, China Extend Trade Truce to Jan. 10 Ahead of Trump-Xi Summit 
Add as a preferred source on Google
Asian stock markets rebounded on Wednesday after suffering steep losses in the previous session, as investors weighed strong earnings from South Korean chipmaker SK Hynix against lingering concerns over artificial intelligence valuations, geopolitical tensions, and the Federal Reserve’s upcoming interest rate decision.
South Korea’s KOSPI rose more than 1% after plunging over 10% on Tuesday, with SK Hynix shares gaining 2% despite the company reporting quarterly results that fell short of elevated market expectations. The memory chip giant posted a more than sixfold jump in operating profit, supported by continued demand for AI-related semiconductors, helping ease concerns surrounding the sector.
The broader recovery extended across the region, with MSCI’s Asia-Pacific index outside Japan climbing 0.8% after a sharp 3.6% decline a day earlier. Japan’s Nikkei 225 also advanced about 1%, although the benchmark remains on track for a double-digit monthly loss as investors reassess AI-related valuations.
Market participants are now focused on earnings from Microsoft and Meta Platforms, which are expected to provide fresh insight into AI spending trends after disappointing cash flow reports from Alphabet and Tesla unsettled investors last week.
Analysts said the market appears to be rotating between sectors rather than entering a broad risk-off phase, though volatility is expected to remain elevated ahead of the Fed’s policy announcement.
Meanwhile, oil prices surged more than 3% after Iran launched ballistic missiles targeting U.S. forces in the Middle East. Although U.S. Central Command said all missiles were intercepted, the renewed tensions reignited concerns over supply disruptions through the Strait of Hormuz, a vital global energy shipping route.
Brent crude climbed to around $86.80 per barrel, while West Texas Intermediate (WTI) traded near $81.95, adding to inflation concerns just hours before the Fed’s decision.
Markets largely expect the Federal Reserve to leave interest rates unchanged, but uncertainty remains high under Chair Kevin Warsh’s limited forward guidance. Futures markets currently assign roughly a one-third probability of a rate hike, with some analysts arguing that rising energy prices could strengthen the case for tighter monetary policy.
