Asian stocks saw a mostly downward trend on Wednesday despite expectations of an interest rate cut by the Federal Reserve. Australia’s benchmark index reached a new record high, while U.S. futures were mixed and oil prices remained stable.
In Tokyo, the Nikkei 225 index initially rose but later declined by 0.4% to 41,095.23. Reports indicated that the Finance Ministry may have intervened in the currency market by purchasing nearly 6 trillion yen ($37 billion) in support of the yen.
The U.S. dollar gained against the Japanese yen, rising to 158.42 from 158.34 yen the previous day. Australia’s S&P/ASX 200 rose by 1% to 8,076.80, reaching a new all-time high. South Korea’s Kospi dropped by 0.2% to 2,859.64.
Meanwhile, Hong Kong’s Hang Seng increased by 0.3% to 17,777.56, but the Shanghai Composite index fell by 0.2% to 2,971.38. Taiwan’s Taiex also decreased by 0.1%, with Taiwan Semiconductor Manufacturing Company’s stock falling by 2.4%. The SET in Bangkok saw a 0.2% rise.
On the previous day, the S&P 500 set a new all-time high of 5,667.20, marking the 38th record-breaking day this year. The Dow Jones Industrial Average jumped by 1.9% to 40,954.48, while the Nasdaq composite showed a more modest gain of 0.2% to 18,509.34.
Some stocks that had seen significant increases the day before, based on expectations related to former President Donald Trump, experienced a drop following his avoidance of an assassination attempt over the weekend. Trump Media & Technology Group fell by 9.1% after a 31.4% jump the previous day. Bond market movements also reversed, with longer-term yields falling more than shorter-term yields.
Expectations of a Federal Reserve interest rate cut have increased due to slowing inflation trends. Traders are now betting with 100% certainty that the Fed will lower its main interest rate in September. However, strong data on retail sales from Tuesday may influence the Fed’s decision-making process.
In other markets, U.S. benchmark crude oil prices slightly decreased, while the euro rose slightly against the dollar.
AP Business Writer Stan Choe contributed.
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