Asian shares mostly gain after Wall Street sets record

Asian stocks closed higher on Wednesday and the prices of gold and silver soared higher ahead of an interest rate decision by the US Federal Reserve.

Later Wednesday, the US central bank was due to announce its latest move on interest rates. The expectation is that it will hold its main interest rate steady for now.

In Asian trading, South Korea's benchmark hit a record, lifted by gains for technology shares like computer chip maker SK Hynix, which climbed 5.1 per cent. The Kospi gained 1.7 per cent to 5,170.81.

Tokyo's Nikkei 225 index clawed back early losses to edge less than 0.1 per cent higher, closing at 53,358.71. Energy and technology giant SoftBank Group Corp. helped lift the benchmark following reports it plans to invest more in OpenAI.

The dollar rebounded slightly against the Japanese yen but has still weakened sharply since last week, putting pressure on shares of major exporters.

The dollar was trading at 152.69 yen, up from 152.19 yen. But it's nearly four per cent lower than its level last week, when it surged to near 160 yen, prompting both Japanese and US officials to warn they will intervene to stem the yen's decline.

The euro slipped to $US1.1987 from $1.2041 late Monday. It also has surged against the dollar.

An index measuring the US dollar's strength against several of its competitors has dropped to its lowest point since 2022.

The price of gold jumped nearly 3.8 per cent to $US5,274.10, and silver's price jumped 7.7 per cent, to $US114.19.

Prices of precious metals have been soaring as investors, including major central banks, have sold dollars to park their money in assets considered to be relatively safe in times of turmoil.

Elsewhere in Asia, Hong Kong's Hang Seng index rose 2.3 per cent to 27,746.33, while the Shanghai Composite index added 0.3 per cent to 4,151.24.

Taiwan's Taiex advanced 1.5 per cent, while the Sensex in India gained 0.3 per cent.

On Tuesday, US stocks zigzagged following mixed profit reports from UnitedHealth, General Motors and other big companies.

Several of Wall Street's most influential stocks will deliver their latest earnings reports later this week. They include Meta Platforms, Microsoft and Tesla on Wednesday and Apple on Thursday.

The S&P 500 rose 0.4 per cent to 6,978.60, edging past its prior all-time high set a couple weeks ago. The Dow Jones Industrial Average dropped 0.8 per cent to 49,003.41, and the Nasdaq composite climbed 0.9 per cent to 23,817.10.

The US dollar has weakened since President Donald Trump threatened tariffs against several European countries that he said opposed his taking control of Greenland. Such threats, along with worries about risks like the US government's heavy debt, have periodically pushed global investors to step back from US markets, a move that's come to be called "Sell America."

Gains for General Motors, which rose 8.7 per cent, and hospital-operator HCA Healthcare, which rallied 7.1 per cent helped support shares. Both delivered profits for the end of 2025 that topped Wall Street's expectations. Each also approved programs to send billions of dollars to their investors by buying back their own stock.

A report from the Conference Board said confidence weakened among US consumers last month. Economists had expected to see a slight improvement, but confidence dropped to its lowest level since 2014, even lower than it was during the COVID-19 pandemic.

Inflation remains stubbornly above the Fed's two per cent target, and lower interest rates could worsen increases in prices for US consumers at the same time that they give the economy a boost. Traders expect the Fed to resume its cuts to interest rates later this year.

The pressure is on companies to deliver strong growth in profits following record-setting runs for their stock prices. Stock prices tend to follow the path of corporate profits over the long term, and earnings need to rise to quiet criticism that they've grown too expensive.

In other dealings early Wednesday, US benchmark crude oil rose six cents to $US62.45 per barrel. Brent crude, the international standard, gave up 10 cents to $US66.49 per barrel.

AP