Asian Shares Mixed as Dollar Slides and Markets Await Fed Decision

BY COMFORT OGBONNA

Asian stock markets showed mixed performance on Wednesday following a record-setting day for the S&P 500 in the United States, as the dollar continued to weaken against major currencies. Investors are closely watching for the Federal Reserve’s announcement later in the day, with expectations that the central bank will maintain its key interest rate for now.

South Korea’s benchmark Kospi index surged 1.3% to a record 5,152.14, led by gains in technology stocks such as computer chip maker SK Hynix, which jumped 3%. In contrast, Tokyo’s Nikkei 225 slipped 0.5% to 53,055.58. While the dollar rebounded slightly against the Japanese yen, it remains nearly 4% below last week’s levels, which had seen a sharp surge toward 160 yen. Major exporters, including Toyota Motor Corp., which fell 3%, faced continued pressure as a result.

The dollar traded at 152.75 yen, up from 152.19 yen, while the euro dropped to $1.1995 from $1.2041 late Monday. An index measuring the dollar’s strength against a basket of other currencies has fallen to its lowest level since 2022. Investors have responded by moving capital into safe-haven assets, driving gold prices above $5,200, up nearly 3%, while silver soared 9%.

Elsewhere in Asia, Hong Kong’s Hang Seng index climbed 2.4% to 27,782.59, the Shanghai Composite advanced 0.5% to 4,160.01, Taiwan’s Taiex rose 1.1%, and India’s Sensex gained 0.5%.

U.S. stock markets saw a mixed session on Tuesday amid varied earnings reports from major companies including UnitedHealth and General Motors. Several influential U.S. companies are scheduled to release their earnings later this week, including Meta Platforms, Microsoft, and Tesla on Wednesday, followed by Apple on Thursday. The S&P 500 edged up 0.4% to 6,978.60, setting a new all-time high, while the Dow Jones Industrial Average dropped 0.8% to 49,003.41, and the Nasdaq composite climbed 0.9% to 23,817.10.

The U.S. dollar has been under pressure in recent weeks due in part to trade threats from President Donald Trump against European countries over Greenland and concerns about U.S. government debt. This has led some global investors to pull back from U.S. markets, a trend sometimes referred to as “Sell America.”

Among the highlights on Wall Street, Corning surged 15.6% after securing a deal with Meta Platforms valued at up to $6 billion to supply optical fiber and cable for data center expansion, prompting the company to expand its manufacturing facility in Hickory, North Carolina. General Motors and hospital operator HCA Healthcare also posted strong earnings, with shares climbing 8.7% and 7.1%, respectively. Both companies approved substantial stock buyback programs, sending billions of dollars back to investors.

Economic data has added to market uncertainty. A report from the Conference Board showed U.S. consumer confidence fell last month to its lowest level since 2014, defying expectations of a slight improvement. Persistent inflation above the Fed’s 2% target is prompting traders to anticipate interest rate cuts later in the year, although lower rates could exacerbate price pressures for consumers even as they support economic growth.

In commodities, U.S. benchmark crude oil rose 42 cents to $62.81 per barrel, while Brent crude climbed 34 cents to $66.93 per barrel, reflecting ongoing demand optimism amid the mixed market backdrop.

Overall, investors in both Asia and the United States are navigating a complex environment of weak dollar trends, persistent inflation, and corporate earnings expectations, all while awaiting guidance from the Federal Reserve on future monetary policy.