Low angle view of tall buildings in Tokyo, Japan, showcasing diverse architectural styles
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South Korea’s Kospi led gains in Asia markets on Wednesday as investors assess Japan trade data and await U.S. Federal Reserve’s interest rate decision.
Markets expect the Fed to keep interest rates steady between 3.5% and 3.75% on Wednesday stateside.
The Kospi gained 2.8% while the small-cap Kosdaq was 1.66% higher
Japan’s Nikkei 225 jumped 1.38%, while the Topix added 0.95% after the country reported that exports climbed 4.2% from a year ago in February, beating estimates.
Economists polled by Reuters had expected a 1.6% rise. Exports had risen 16.8% jump in the previous month.
Australia’s S&P/ASX 200 was flat in early trade.
Hong Kong Hang Seng index futures were set at 25,891, higher than the index’s last close of 25,868.54.
The Middle East war continues to escalate, keeping investors on edge. A fresh wave of attacks on the United Arab Emirates’ energy infrastructure has heightened fears of prolonged supply disruptions amid the Iran war.
The incidents followed a drone strike on the world’s largest ultra-sour gas development, a fire at the UAE’s Fujairah Oil Industry Zone, and damage to a tanker near the strategically vital Strait of Hormuz.
U.S. oil prices rose 0.06% to $96.27 as of 7:33 p.m. ET.
U.S. stock futures traded near the flat line ahead of the Fed’s policy decision. Futures tied to the Dow Jones Industrial Average lost 37 points, or 0.07%. S&P 500 futures dropped 0.07%, while Nasdaq 100 futures fell 0.02%.
Overnight in the U.S., the S&P 500 rose as Wall Street built on the momentum seen in the previous session amid developments in the Iran war.
The broad market index closed up 0.25% at 6,716.09, and the Nasdaq Composite climbed 0.47% to finish at 22,479.53. The Dow Jones Industrial Average added 46.85 points, or 0.1%, to end at 46,993.26.
— CNBC’s Lim Hui Jie, Sean Conlon and Pia Singh contributed to the report.