Asian equities rebounded on Wednesday October 14, after two sessions of losses, as investors bet the US Federal Reserve would not need to tighten policy aggressively next year.
MSCI’s Asia Pacific equities index gained 0.2%. On Tuesday, a rout in chip stocks had pushed the gauge to its weakest close since August. South Korea’s Kospi rose 1.73%, Taiex added 0.52% and Nikkei 225 climbed 0.47%, while Topix slipped 0.11%. Hang Seng futures barely moved.
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Elsewhere in the region, Chinese shares risked sliding back into a bear market as scepticism grew over whether Beijing would deliver substantial stimulus to revive the economy and restore investor confidence.
The CSI 300 Index had dropped more than 15% from its June peak and sat at its lowest level since August 2025.
In India, the GIFT Nifty, which indicates how the country’s stock market would open for the day predicted a negative start.
The country’s stocks are in focus after Finance Minister Nirmala Sitharaman said she was keen to hear discussions on the transaction tax levied on share trading, as the country sought to attract more capital inflows.
The Nifty 50 extended gains while she spoke on Tuesday and closed 1.6% higher, its biggest advance in more than two months.
Japan’s currency meanwhile stayed steady, trading at 158.33 per dollar in early deals, after Bloomberg reported that Bank of Japan officials were leaning against a rare consecutive rate increase this month. The report added that policymakers kept open the option of another move as early as December.
The offshore yuan was little changed at 6.6930 per dollar.
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The regional recovery followed a calmer session on Wall Street. The S&P 500 trimmed its earlier losses to finish roughly flat, after New York Fed President John Williams said he still considered one more rate rise appropriates this year but saw no need for further tightening in 2027.
His remarks eased pressure on technology shares, and Microsoft closed at a record high. US Treasuries rallied and the US dollar weakened in New York trading, as investors turned to Wednesday’s US consumer price data for fresh signals on the interest-rate outlook.
US equities have held up well despite wider worries. According to Bloomberg, the S&P 500 had not suffered a 1% daily fall in 53 sessions through Tuesday, its longest such run since January 2020.
The start of the US earnings season also shaped sentiment. JPMorgan Chase, Citigroup and Wells Fargo, each posted record third-quarter lending income, as customers kept borrowing despite higher rates.
At Goldman Sachs equity traders outperformed forecasts, but fixed-income and rates trading fell well short of Wall Street estimates. Investors also seemed to watch earnings for hints on the artificial intelligence trade, which has come under strain as doubts grow over whether the billions being spent will deliver matching returns.
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Oil prices kept climbing. US crude rose 0.8% to about $94.80 a barrel, its fifth consecutive daily gain, as renewed attacks in West Asia deepened uncertainty over the recovery of energy shipments from the Arabian Gulf.
Brent, the global benchmark, rose to $106.51 a barrel in early Asian trading, while the US West Texas Intermediate gained 0.7% to $94.81. Markets worried that elevated crude prices could keep inflation stubbornly high, which added to the importance of Wednesday’s US inflation reading.
With Bloomberg Inputs