Shares in Asia showed a mixed performance on Wednesday following a relatively quiet session on U.S. stock indexes as investors awaited key economic reports. Hong Kong's Hang Seng index rose by 1.7% to 17,115.94, while the Shanghai Composite index declined by 0.8% to 3,026.11 after Fitch Ratings revised its outlook for China's public finances. Fitch highlighted increased risks due to China's efforts to reduce reliance on its troubled property sector and the growing public debt burden.
The Nikkei 225 in Tokyo slipped by 0.5% to 39,581.81, and the S&P/ASX 200 in Sydney gained 0.3% to 7,848.50. India's Sensex advanced by 0.3%, and the SET in Bangkok climbed 0.5%. South Korean markets were closed due to an election.
In the U.S., the S&P 500 edged up 0.1% to 5,209.91, the Dow Jones Industrial Average dipped slightly to 38,883.67, and the Nasdaq composite rose by 0.3% to 16,306.64. Investors are eagerly awaiting updates on inflation and corporate earnings reports this week, with a keen interest in how these factors may influence the Federal Reserve's decisions on interest rates.
Concerns about inflation have led to speculation about potential rate cuts, with some investors scaling back expectations from earlier forecasts. The Fed's current interest rate is at its highest level in over two decades, prompting discussions about the risk of a recession if rates remain elevated for too long.
Oil prices have been a point of focus, with U.S. benchmark crude oil gaining slightly to $85.44 per barrel, while Brent crude rose to $89.64 per barrel. On Wall Street, Apple and Norfolk Southern made notable moves, with Apple contributing to the S&P 500's gains and Norfolk Southern facing a class-action lawsuit settlement.
Stocks in the artificial-intelligence technology sector experienced losses, with Nvidia and Super Micro Computer declining. Tilray Brands also saw a significant drop after reporting weaker revenue growth than expected.
In currency markets, the U.S. dollar strengthened against the Japanese yen, while the euro weakened slightly against the dollar. Overall, market participants are closely monitoring economic indicators and corporate performance for insights into future market trends.
