Asian Shares Rise as Investors Focus on Fed, Tariffs, and Oil Prices
BANGKOK (AP) — Asian shares experienced modest gains on Wednesday, following the upward trend in U.S. stocks as investors weighed in on comments made by Federal Reserve Chair Jerome Powell to Congress.
Oil prices also gained more than 1% early in the day, reversing a decline of about 6% from the previous day, amid hopes that the fragile ceasefire between Iran and Israel would not disrupt the global flow of crude. Lower oil prices could give the Federal Reserve the leeway to cut interest rates to support the economy, and Powell indicated that the central bank is waiting for the right moment to do so.
The tentative truce between Iran and Israel, announced by U.S. President Donald Trump a day earlier, appeared to be holding steady, easing concerns about a potential disruption of oil supplies.
In Asian trading, Tokyo's Nikkei 225 rose 0.3% to 38,917.08, while the Hang Seng in Hong Kong advanced 0.9% to 24,386.59. The Shanghai Composite index increased 0.5% to 3,437.10. In South Korea, the Kospi edged up 0.2% to 3,110.19, and Australia's S&P/ASX 200 added 0.1% to 8,562.90.
Taiwan's Taiex gained 1.1%, and the Sensex in India rose 0.7%. However, the SET in Bangkok slipped 0.4%.
"The world can now move on to face other difficult choices like tariffs and such issues," said Frances Lun, CEO of GEO Securities in Hong Kong. "I think the market is well on its way to rebound and could again reach new levels."
On Tuesday, the S&P 500 climbed 1.1% to 6,092.18, following significant gains for stocks across Europe and Asia after Trump's announcement of a "complete and total ceasefire" between Israel and Iran. The main measure of Wall Street's health is now within 0.8% of its February record high, having fallen roughly 20% earlier in the spring.
The Dow Jones Industrial Average jumped 1.2% to 43,089.02, and the Nasdaq composite rallied 1.4% to 19,912.53.
Concerns about a potential disruption of global oil supplies due to the Israel-Iran conflict have eased with the recent drop in oil prices. Iran is a significant producer of crude oil, and its potential obstruction of the Strait of Hormuz, through which 20% of the world's daily oil needs pass on ships, had previously raised fears of a supply squeeze.
However, with the global oil market well supplied and OPEC+ steadily increasing production, oil prices could continue to fall as long as the ceasefire holds and a lasting peace solution is found.
"Easing stress in energy markets is excellent news for everyone who doesn't want to see higher oil prices translating into accelerating inflation and tighter monetary policy," said Ipek Ozkardeskaya, a senior analyst with Swissquote Bank. "The market mood has been restored."
The Fed has repeatedly stated that it wants to wait and see how much higher tariffs imposed by Trump will hurt the economy and raise inflation before committing to its next move. So far, the economy seems to be holding up relatively well, though a report on U.S. consumer confidence came in weaker than expected on Tuesday, and inflation has remained only slightly above the Fed's 2% target.
In currency dealings, the U.S. dollar rose to 145
Asian stocks are soaring as investors' attention shifts from the Federal Reserve, trade tariffs between nations like China and U.S., to uncertain oil prices.
Investors, eager for clarity on the Fed's policy stance and sensitive to recent changes in tariffs as well a growth prospects accompanying oil price fluctuations across Asia-Pacific markets.
随着投资者将焦点集中在美联储、关税以及油价的动向，亚洲股市整体上涨展现出市场情绪的乐观和对全球关键经济因素的期待。
今日亚洲股市表现亮眼，投资者聚焦美联储动向、关税调整及油价波动寻求投资良机。
The recent upward surge in Asian shares is a testament to investors' growing confidence, particularly as they divine stability amid the Federenal Reserve policy uncertainty and relative calmness on trade tariffs coupled with stable oil prices.
The recent surge in Asian stock markets reflects investors' renewed optimism, driven by a focus on the expected accommodative stance of Fed policy towards inflation concerns amidst ongoing trade tariffs and volatile oil prices.
今天的亚洲股市普涨，充分反映了投资者在美联储政策、贸易关税以及国际油价波动方面的密切关注与谨慎乐观情绪。
Today's surge in Asian markets can be attributed to investors reallocating their focus towards the Federal Reserve policy, ongoing trade tariffs negotiations between major economies and positive momentum from improved oil prices.
Positive Asian stock market performances reflect investors' concerted efforts to navigate uncertainty related to the Fed policy, trade tariffs renegotiations with China under a Biden administration scenario and global oil prices trends.
