Asian Equities Broadly Rise as Reduced Fed Rate-Hike Prospects Bolster Risk Appetite

By Ronnie Harui

Asian equities broadly rose Wednesday morning as diminished expectations of near-term Federal Reserve interest-rate hikes boosted risk appetite.

New York Fed President John Williams said Tuesday that the U.S. central bank faces no urgency to raise rates following its increase earlier this month. His comments suggest that the Fed could wait until December before lifting rates again, easing expectations for another rate increase next month.

Remarks from Williams have particular weight because as vice chairman of the Fed's rate-setting committee, he has usually sought to reflect the views of the committee's center of gravity rather than stating his own position.

"Williams said one further rate hike may be appropriate late this year, though he signaled no urgency to act following the increase earlier this month," said Joseph Capurso, head of Foreign Exchange, International & Geoeconomics at Commonwealth Bank of Australia. Market pricing for a 25-basis-point rate increase at the Fed's next meeting in October declined to 49% from 71% previously, Capurso added.

Japan's Nikkei Stock Average was up 1.2%, South Korea's Kospi advanced 0.5%, and Malaysia's FTSE Bursa Malaysia KLCI gained 0.5%. Meanwhile, Hong Kong's Hang Seng Index fell 0.3%.

Crude oil futures edged higher amid ongoing uncertainty surrounding U.S.-Iran diplomatic efforts and the status of the Strait of Hormuz, a key waterway through which one-fifth of the world's oil is transported.

"Traders tracked diplomatic efforts to end U.S.-Iran hostilities and restore energy flows through the Strait of Hormuz," ANZ Research analysts said in a research report. "Qatar said it will meet with the U.S. and Iran and exchange ideas on possible solutions. However, Iranian officials had earlier expressed doubts about reaching a deal before the U.S. mid-term elections in November," the analysts added.

Front-month West Texas Intermediate crude oil futures were up 0.4% at $89.71 a barrel, and front-month Brent crude oil futures gained 1.1% to $103.73 a barrel, according to ICE data.

Write to Ronnie Harui at ronnie.harui@wsj.com

(END) Dow Jones Newswires

September 29, 2026 21:56 ET (01:56 GMT)