Asian Stocks Mixed Following US Market Record
Asian shares displayed a mixed performance on Wednesday following the S&P 500 reaching a record high, while the value of the US dollar continued to decline. Later Wednesday, the Federal Reserve is set to announce its next move regarding interest rates. The expectation is that it will maintain its main interest rate at the current level for the time being. South Korea’s benchmark reached a new high, buoyed by advancements in technology stocks, including a 3 per cent increase for computer chip manufacturer SK Hynix. The Kospi increased by 1.3 percent, reaching 5,152.14. Tokyo’s Nikkei 225 index experienced a decline of 0.5 per cent, settling at 53,055.58. The dollar experienced a slight rebound against the Japanese yen; however, it has significantly weakened since last week, creating pressure on the shares of major exporters. Toyota Motor Corp. experienced a decline of 3 per cent, while other major manufacturers similarly faced extended losses. The dollar was trading at 152.75 yen, an increase from 152.19 yen. However, it is almost 4 per cent lower than its level from the previous week, when it soared to close to 160 yen, leading both Japanese and US officials to caution that they will take action to halt the yen’s drop. The euro declined to USD 1.1995, down from USD 1.2041 late Monday. It has experienced a significant increase against the dollar. An index that gauges the strength of the US dollar against a range of its competitors has fallen to its lowest level since 2022.
The price of gold surged nearly 3 per cent, exceeding USD 5,200, while silver’s price soared by 9 per cent. Prices of precious metals have surged as investors have divested from dollars to secure their funds in assets deemed relatively safe during periods of turmoil. In other parts of Asia, Hong Kong’s Hang Seng index experienced an increase of 2.4 percent, reaching 27,782.59, while the Shanghai Composite index saw a gain of 0.5 percent, climbing to 4,160.01. Taiwan’s Taiex advanced by 1.1 per cent, while India’s Sensex saw a gain of 0.5 per cent. On Tuesday, US stocks fluctuated in response to mixed profit reports from UnitedHealth, General Motors, and other major corporations. Later this week, several of US Market’s most influential stocks are set to release their latest earnings reports. On Wednesday, they include Meta Platforms, Microsoft, and Tesla, followed by Apple on Thursday. The S&P 500 increased by 0.4 percent to 6,978.60, surpassing its previous all-time high established a few weeks prior. The Dow Jones Industrial Average fell by 0.8 percent, settling at 49,003.41, while the Nasdaq composite increased by 0.9 percent, reaching 23,817.10.
The dollar has experienced a decline following President Donald Trump’s threats of tariffs against various European nations, which he claimed were opposed to his efforts to take control of Greenland. Such threats, along with concerns regarding risks such as the US government’s substantial debt, have periodically caused global investors to retreat from US markets, a phenomenon referred to as “Sell America.” On US Market, Corning played a pivotal role in driving the market upward, surging 15.6 percent following the announcement of a deal with Meta Platforms valued at up to USD 6 billion. Corning is set to provide optical fibre and cable to support the expansion of data centres for Meta, prompting the company to expand its optical-fibre manufacturing facility located in Hickory, North Carolina. Additionally, the US stock market benefited from increases in General Motors, which surged 8.7 percent, and HCA Healthcare, which experienced a rally of 7.1 percent. Both reported profits for the end of 2025 that exceeded US Market’s expectations. Each also sanctioned initiatives to allocate billions of dollars to their investors through the repurchase of their own shares. A report indicated that confidence among US consumers diminished last month. Economists had anticipated a modest improvement; however, confidence plummeted to its lowest point since 2014, falling even below the levels observed during the COVID-19 pandemic.
Inflation continues to persist above the Fed’s 2 percent target, and reducing interest rates may exacerbate price increases for US consumers while simultaneously providing a lift to the economy. Traders anticipate that the Fed will reinstate its reductions to interest rates later this year. Companies are under significant pressure to achieve robust profit growth after experiencing record-setting performances in their stock prices. Over the long term, stock prices generally align with corporate profits, and there is a necessity for earnings to increase in order to address concerns regarding the perceived overvaluation of stock prices. In other dealings early Wednesday, US benchmark crude oil increased by 42 cents, reaching USD 62.81 per barrel. Brent crude, the international benchmark, increased by 34 cents to reach USD 66.93 per barrel.
