Asian Stocks Rise Ahead of Fed Rate Decision Amid Inflation Concerns
Asian stocks generally rose on Wednesday as investors awaited the Federal Reserve's interest rate decision. The widely anticipated hike is seen as a move to combat elevated US inflation above the Fed's target.
The Nikkei 225 in Japan gained 0.7% to 63,923.00 despite a fourth consecutive month of trade deficit in August. South Korea's Kospi rose 1.4%, while Hong Kong's Hang Seng edged up 0.2%. The Shanghai Composite index climbed 0.7%.
Ahead of the Fed decision, US futures also increased. Artificial intelligence-related stocks remained volatile following calls from US AI leaders to slow development of the technology for safety reasons. SoftBank Group, a key investor in OpenAI, dropped 1.5%, while chip equipment manufacturer Tokyo Electron rose 2.1%.