Prior to Fed’s decision, Stocks Rise as Dollar Remains Stable – Asia Market Wrap

Global stocks are on track for their longest winning streak in a month, with technology companies propelling Asian equities to a record high. The Dollar has stabilised after fears about unpredictable US policymaking pushed a currency indicator to its lowest level in nearly four years.

The MSCI All Country World Index climbed 0.2%, falling just short of a record. Equity-index futures pointed to more gains for US markets after the S&P 500 Index finished at a new high on Tuesday. SoftBank said it was in talks to invest an extra $30 billion in OpenAI, boosting Nasdaq 100 contract prices. Asian stocks advanced 1.1% as a regional technology index set a new peak. European shares were expected to fall somewhat.

Stocks have risen from their April lows, boosted by reduced interest rates and expectations that artificial intelligence investments will pay off. A significant test comes Wednesday, when the Fed makes its first policy decision of the year and megacap technology companies begin reporting earnings.

Several Asian currencies, including the South Korean Won, rose against the US Dollar on Wednesday. An Asia Dollar Index rose 0.3%, holding near levels last seen in July.

Gold reached a record high above $5,200 per ounce, extending a rapid advance fuelled by Dollar weakness.