Investing.com– Most Asian stocks rose on Wednesday, with the Nikkei remaining close to record highs amid strength in technology shares, although anticipation of a Federal Reserve meeting limited overall gains.
Regional markets took mixed cues from Wall Street’s overnight session, where investors broadly pivoted out of tech and into more economically sensitive sectors.
S&P 500 Futures rose 0.2% in Asian trade, with focus squarely on the Fed’s decision later in the day. The central bank is expected to leave interest rates unchanged, and is also likely to signal no immediate changes.
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Nikkei close to record highs on chips, industrial gains
Japan’s was among the better performers for the day, rising 0.6% and coming close to a record high of over 70,000 points hit on Tuesday.
The rose 0.75%.
Chipmaking and industrial stocks were the best performers in the index, aided by optimism over continued artificial intelligence-driven demand for the sectors.
Trade data released earlier on Wednesday showed AI-related electronics and semiconductor sales drove strong growth in May, helping Japan clock a smaller-than-expected for the month.
SoftBank Group Corp. () lagged, falling as much as 5% after reports showed OpenAI– in which the company is a major investor– was struggling with mounting costs and persistent losses tied to running its expensive AI models.
Japanese stocks largely firmed past a by the Bank of Japan on Tuesday. The central bank also signaled readiness to hike rates further in the face of energy-driven inflation.
Asia stocks rise with Fed decision, Iran peace in focus
Broader Asian stocks advanced on Wednesday, with Singapore’s surging over 1% to a record high.
Singapore’s grew much more than expected in May, advancing at their fastest pace in over 20 years amid solid AI-driven demand for electronics.
Australia’s rose 0.5% after the Reserve Bank of Australia as expected on Tuesday.
China’s rose 0.3%, while the fell 0.1%. Hong Kong’s shed 0.75%, following weak Chinese economic prints from earlier this week.
South Korea’s traded sideways, pausing for breath after logging heightened volatility on wild swings in local chipmaking stocks.
Futures for India’s rose 0.6%.
The Fed is set to conclude a two-day meeting on Wednesday, and is widely expected to . Focus will be squarely on Fed Chair Kevin Warsh’s outlook for the economy and interest rates.
Beyond the Fed, focus this week is also on the signing of a memorandum of understanding between the U.S. and Iran, scheduled for Friday. The deal is set to end hostilities and reopen the Strait of Hormuz