HONG KONG — Global shares were higher Wednesday despite losses on Wall Street, as investors await the U.S. Federal Reserve’s decision on interest rates, with high expectations of a hike.
The potential hike will be the first in three years as inflation remains elevated in the United States and above the Fed’s target. Meanwhile, U.S. futures edged higher.
In early European trading, Britain’s FTSE 100 rose 0.2 per cent to 10,681.92. France’s CAC 40 climbed 0.2 per cent to 8,103.73, while Germany’s DAX edged up 0.1 per cent to 25,424.65.
In Asia, Japan’s Nikkei 225 gained 0.7 per cent to 63,923.00, despite official data showing that Japan recorded a fourth consecutive month of trade deficit in August.
South Korea’s Kospi rose 1.4 per cent to 6,717.97. Hong Kong’s Hang Seng edged up 0.2 per cent to 24,713.78. The Shanghai Composite index climbed 0.7 per cent to 3,891.60.
Artificial intelligence-related stocks remained volatile after U.S. AI leaders called for slower development to ensure safety.
SoftBank Group, a key investor in OpenAI, dropped 1.5 per cent after rising 7.5 per cent the day before. Chip equipment manufacturer Tokyo Electron rose 2.1 per cent, while Japanese memory maker Kioxia Holdings lost 1.9 per cent.
South Korea’s memory chipmaker SK Hynix climbed 4.1 per cent. Samsung Electronics was up 2 per cent.
Taiwan’s Taiex advanced 0.7 per cent. Taiwan’s leading AI chipmaker TSMC, or Taiwan Semiconductor Manufacturing Co., fell 0.2 per cent.
Australia’s S&P/ASX 200 added 0.3 per cent to 8,696.50.
India’s Sensex gained 0.4 per cent.
Oil prices fell early Wednesday after rising on Tuesday as tensions dragged on between the U.S. and Iran, and as Saudi Arabia’s crucial oil pipeline closure added pressure on global oil supply.
Brent crude, the international standard, was 0.4 per cent lower at US$108.34 a barrel, but still well above the around $72 per barrel level before the start of the war in late February.
Benchmark U.S. crude fell 0.9 per cent to $104.86 a barrel.
On Tuesday, Wall Street’s benchmark S&P 500 fell 0.5 per cent. The Dow Jones Industrial Average lost 0.6 per cent, and the technology-heavy Nasdaq composite dropped 0.8 per cent.
AI stocks in the U.S. were steadying. Nvidia climbed 0.6 per cent, while Advanced Micro Devices rose 2.2 per cent.
Higher U.S. Treasury yields have put pressure on the stock market. Government bond yields have risen as the Iran war-driven energy crisis added to inflationary pressure while the U.S. national debt grew.
The 10-year Treasury was at 5 per cent early Wednesday, after it briefly touched 5.04 per cent this week, its highest level in years.
In other dealings, the U.S. dollar fell to 155.08 Japanese yen from 155.10 yen. The euro was trading at $1.1541, down from $1.1544.
Chan Ho-him, The Associated Press
