Tuesday had marked a day of uncertain trading after US President Donald Trump locked horns with Federal Reserve Governor, Lisa Cook, whom he fired over allegations of “financial irregularities in mortgage loans”. However, the Wall Street benchmarks did end up making up for the losses, ending just below their records.
Asian stocks logged modest gains Wednesday, despite US futures edging higher as investors keep their eyes peeled on Nvidia earnings after trading ends on Wednesday. The US-based technology giant and artificial bellwether is due to release its quarterly report, which will help clarify whether markets have been soaring on an overhyped bubble, or if AI technology is actually set to boom.
Japan's Nikkei 225 rose a meagre 0.3 per cent to 42,522.97, while the Kospi in Seoul was up just over 1 point to 3,181.31.
Hong Kong's Hang Seng also edged less than 0.1 per cent higher, to 25,541.43, and the Shanghai Composite index advanced 0.3 per cent to 3,881.07.
In Australia, the S&P/ASX 200 was only marginally up 0.1 per cent at 8,948.30.
Taiwan's Taiex climbed 0.7 per cent, and the SET in Bangkok was up 0.4 per cent.
Also Read: Asian shares mixed after Wall Street records losses
Markets in India were closed for a public holiday, but with 50 per cent tariffs on exports to the United States taking effect on August 27, the Indian benchmark indices are bracing for the impact to take a toll on their gains.
On Wednesday, the S&P 500 closed 0.4 per cent higher at 6,465.94. The Dow gained 0.3 per cent to 45,418.07 and the Nasdaq added 0.4 per cent to 21,544.27.
Meanwhile, Boeing shares rose 3.5 per cent, registering one of the biggest gains among S&P 500 companies, after Korean Air announced a USD 50 billion deal with the company that includes buying more than 100 aircraft. Dish Network parent EchoStar also surged 70.2 per cent after AT&T said it will buy some of its wireless spectrum licenses in a USD 23 billion deal.
August’s disappointing results in US job markets preview had resulted in consumer anxiety, although the Conference Board's monthly survey was mostly in line with economists' projections.
Last week’s Jackson Hole symposium and Federal Reserve Chair, Jerome Powell’s speech hinting at possible interest rate cuts coming in September had led to the Wall Street notching big gains. These were later pared down by Trump’s escalated tensions with Fed Res Governor, Cook, who said she’ll sue Trump’s administration for trying to fire her.
Trump has been feuding with the central bank over its cautious interest rate policy. The Fed has held rates steady since late 2024 over worries that Trump's unpredictable tariff policies will reignite inflation. Trump has also threatened to fire Fed Chair Jerome Powell, often taunting him with name-calling. Still, he is only one of 12 votes that decides interest rate policy.
Traders now see greater hopes of the Fed trimming its benchmark interest rates in September, with at least 87 per cent betting on the chance that the central bank will cut the rate by a quarter of a percentage point, according to data from CME Group.
The last time that the Federal Reserve had cut its benchmark interest rate was in late 2024, after spending the last several years fighting rising inflation by raising interest rates. It managed to tame inflation mostly and avoided having those higher rates stall economic growth, thanks largely to strong consumer spending and a resilient job market.
In 2025, the Fed hit the pause button over concerns that higher tariffs imposed by Trump could reignite inflation. Lower interest rates make borrowing easier, helping to spur more investment and spending, but that could also potentially fuel inflation. However, concerns are deepening over the jobs market.
Friday will bring another update on inflation, the US personal consumption expenditures index. Economists expect it to show that inflation remained at about 2.6 per cent in July, compared with a year ago. Businesses have been warning investors and consumers about higher costs and prices because of tariffs.
In other dealings early Wednesday, US benchmark crude oil edged up 1 cent to USD 63.26 a barrel. Brent crude, the international standard, slipped 1 cent to USD 66.69 a barrel.
Follow us
