Asian Shares Mixed As Investors Await Fed Rate Decision

(RTTNews) - Asian stocks ended mixed on Wednesday ahead of the U.S. Federal Reserve's interest-rate decision under Chairman Kevin Warsh later in the day and Friday's signing of the U.S.-Iran interim peace agreement.

The signing of the Memorandum of Understanding in Switzerland is likely to pave the way for a 60-day negotiating period to address key issues that have plagued U.S.-Iran diplomacy for decades.

The framework may rapidly unlock Iranian oil exports, channel funds into its economy and begin a phased rollback of sanctions in exchange for nuclear curbs.

Meanwhile, the Fed is seen holding rates steady today despite concerns over persistent inflation. With investors focused on macroeconomic conditions and policy direction, all eyes will be on Kevin Warsh's first FOMC press conference.

The dollar eased in Asian trading and gold was little changed at $4,330 an ounce while Brent crude futures fell toward $78 a barrel on optimism for an end to the U.S.-Iran war and a possible reopening of the Strait of Hormuz, crucial for oil and gas transit worldwide.

China's Shanghai Composite index edged up by 0.40 percent to close at 4,108.08 after a choppy session.

Hong Kong's Hang Seng index fell 0.74 percent to 24,312.16. HSBC shares rallied 1.4 percent after the lender announced it would use Google Cloud to roll out artificial intelligence across its global operations.

Japanese markets advanced as data showed Japan's exports grew at their fastest pace since November 2022 in May, helped in part b strong demand for cars and high-tech products.

Additionally, core machinery orders jumped 8.7 percent in April, beating forecasts and pointing to steady capital spending.

The Nikkei average surged 0.72 percent to 69,902.25, closing at a record high for a third straight session. The broader Topix index closed 0.55 percent higher at 4,013.23.

Seoul stocks ended higher for a fifth consecutive session as falling oil prices tempered inflation concerns. The Kospi index rallied 1.58 percent to 8,864.24, driven by gains in technology stocks.

While market bellwether Samsung Electronics rose about 1 percent, SK Hynix soared 5.8 percent to set a new record.

Australian markets closed at a two-month high, with banks and miners leading the surge. The benchmark S&P/ASX 200 rose 0.54 percent to 8,966.30 while the broader All Ordinaries index surged 0.60 percent to 9,185.90.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index dropped 0.25 percent to 13,392.98, erasing gains from the previous session ahead of the release of Q1 GDP data.

Overnight, U.S. stocks ended mixed as markets waited for the U.S.-Iran peace deal to be finalized. The narrower Dow gained 0.6 percent to reach a new record closing high on eased inflation and rate worries after U.S. officials indicated that the interim peace deal will reopen the Strait of Hormuz to commercial traffic without tolls by Friday.

Yields on Treasuries fell and oil prices remained close to three-month lows after the Wall Street Journal reported that the United States will allow Iran to immediately resume oil exports, marking a significant shift in sanctions policy.

The tech-heavy Nasdaq Composite fell 1.2 percent and the S&P 500 gave up 0.6 percent, weighed down by losses in chip stocks.