Key Takeaways
- Asian shares edged higher, with chipmakers related to artificial intelligence recovering from a selloff.
- US consumer price index data awaited for insights on Federal Reserve interest-rate outlook.
- Oil prices remained elevated, dampening market sentiment despite gains in some tech stocks.
Asian shares inched higher on Wednesday, with those related to artificial intelligence finding some respite after a selloff, according to market reports.
In South Korea, chipmakers Samsung Electronics and SK Hynix saw gains of more than 2%, while Kioxia recovered some of its previous session's losses, remaining steady.
Japan's Nikkei rose 0.2%, while South Korea's Kospi added 1.8%, reflecting a cautious market sentiment.
However, elevated oil prices, following Houthi missile and drone attacks on Saudi Arabia, tempered any gains, with US crude ticking up 0.8% to $94.96 a barrel.
Brent crude rose to $106.6, indicating ongoing concerns over energy supplies and market volatility.
Market participants were closely watching US consumer price index data, hoping to gain insights into the Federal Reserve's interest-rate outlook.
Economists estimated that headline inflation could accelerate to an annual 3.6% in September, with the core CPI rising 0.2% on a monthly basis.
The risk of a core CPI surprise to the upside, due to strong consumer demand and higher costs, could push up market pricing of an October Fed hike, according to Commonwealth Bank of Australia's currency strategist Carol Kong.
Investors priced in a 22% chance of an October interest rate hike ahead of the CPI data, as shown by the CME FedWatch Tool.
New York Federal Reserve President John Williams suggested that the Fed may need to raise its policy rate once more this year to slow inflation, but he sees no need for hikes in 2027.
