Asian shares edged higher on Wednesday as AI-related stocks found some respite after a selloff. Elevated oil prices and caution ahead of US inflation data tempered the gains.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.8% after hitting a ten-week low in the previous session. Nasdaq futures strengthened 0.3%, while European futures were 0.4% higher.
Chipmakers recover part of the previous loss
AI supply chain firms recovered some of the previous session's loss. Samsung Electronics rose 2.4% and SK Hynix gained 0.8% in South Korea, TSMC added 1.4%, and AI investor SoftBank bounced 3.4%.
Bank of America, in a survey of Asian fund managers, said concerns about stretched valuations had eased. Even so, sentiment remained cautious as oil prices rose on concern over energy supplies after two vessels were struck in the Strait of Hormuz.
Oil rises and longer-dated bonds rally
US crude ticked up 0.6% to $94.70 a barrel, while Brent rose to $106.27 per barrel, near a two-week high. Longer-dated bonds rallied as investors sought safety.
The yield on benchmark 10-year Treasury notes was steady at 5.204% after touching its lowest in nearly two weeks. The 30-year yield held at 5.553% following a three-day decline.
On Wall Street overnight, US bank stocks lost ground after mixed quarterly results from Citigroup and peers. S&P 500 e-mini futures were up 0.2% at 7,873.5.
US CPI test comes later on Wednesday
Market participants awaited the US consumer price index data for clues on the Federal Reserve's interest-rate outlook. Economists estimated headline inflation accelerated to an annual 3.6% in September, with core CPI rising 0.2% on a monthly basis.
New York Fed President John Williams said the Fed may need to raise its policy rate once more this year but sees no need for hikes in 2027. Investors priced in a roughly 22% chance of an October rate hike, according to the CME FedWatch Tool.
In China, producer prices rose at their fastest pace in more than four years, while consumer inflation edged up last month.
Source: Reuters via Investing.com
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