Asian stocks saw gains on Wednesday following the Bank of Japan's decision to raise its benchmark interest rate. The Federal Reserve and the Bank of England were expected to announce policy decisions later in the day and on Thursday, respectively.
Japan's Nikkei 225 index closed 1.5% higher at 39,101.82 after the BOJ raised the benchmark rate to about 0.25% from 0.1%. The rate hike was anticipated to strengthen the yen, but the dollar fluctuated against the Japanese currency, trading above 153.00 yen at times and falling to 151.60 by late Wednesday afternoon.
The U.S. Federal Reserve was predicted to maintain interest rates in its announcement on Wednesday, with a potential cut expected at the September meeting. In Hong Kong, the Hang Seng index rose 2.2%, while the Shanghai Composite index increased by 2.1% following data showing China's manufacturing activity contracted for a third consecutive month.
Australia's S&P/ASX 200 advanced 1.6% after inflation rates rose to 3.8% annually. South Korea's Kospi index rose 0.9% after Samsung Electronics reported a significant increase in operating profit.
In the U.S., the S&P 500 slipped 0.5%, the Dow Jones Industrial Average rose 0.5%, and the Nasdaq composite fell 1.3%. PayPal and JetBlue Airways saw notable gains after surpassing profit expectations.
The Russell 2000 index of smaller stocks rose 0.3%, with expectations of a potential Fed rate cut leading to declining bond yields. U.S. benchmark crude oil rose to $76.28 per barrel, and Brent crude reached $79.56 per barrel. The euro also saw a slight increase in value.
