Stocks in Asia rose for a fourth day, serving as a contrast to the US where a selloff continued. Gold rose to a new record.
Shares in Japan and South Korea rose, while Chinese stocks were mixed. S&P 500 futures advanced after benchmarks slid on Tuesday.
Investors have slashed holdings of US equities by the most on record while cash levels jumped, according to Bank of America Corp.’s latest survey.
Uncertainty over President Donald Trump’s economic policies, particularly around trade and tariffs, has spurred fears of a recession, with traders seeking clarity from the Federal Reserve policy decision later Wednesday.
Investors have also been hunting for opportunities elsewhere, with benchmarks in China and Japan rallying in recent weeks.
The yen retreated against the dollar, though fluctuated earlier as the BOJ stood pat and said a virtuous cycle of wages and prices is intensifying, while keeping an eye on the global trade situation.
Traders are turning their focus to Governor Kazuo Ueda’s press conference Wednesday afternoon.
“The BOJ seems to be now factoring in external uncertainties, including tariff risks, into its decision-making. This could reduce the hawkish tilt,” said Charu Chanana, chief investment strategist at Saxo Markets.
“In the Trump era, central banks play a less dominant role, so the yen’s impact may not be as pronounced as it was last year.”
