Japan’s Topix index rallied by more than 1% on Wednesday, thereby extending its three-decade high. This is the index’s fourth consecutive daily rise, with central banks in China and Japan implementing supportive monetary policies ahead of the Federal Reserve’s interest rate policy decision expected on Wednesday.
Asia’s gains were paired with European losses, with futures listed on the pan-European Euro Stoxx 50 edging 0.1% lower. U.S. equities remained steady, with the S&P 500 gaining 0.7%. Futures on the Nasdaq 100 rose 0.8%.
Stocks appeared stronger after data released on Tuesday showed a cooldown in U.S. inflation. This report has given rise to investors’ beliefs that the Federal Reserve will implement a pause to its interest rate hiking agenda, thereby keeping rates within the 5% to 5.25% range.
Inflation data released on Tuesday showed that consumer prices largely declined, with core CPI decelerating on an annual basis. While the current level of inflation—4% on a year-over-year basis—is the lowest since March 2021, it remains above the Federal Reserve’s target level of 2%.
