(RTTNews) - Asian stocks rose broadly on Wednesday as oil prices fell sharply and investors braced for the U.S. Federal Reserve's interest rate decision later in the day.
Markets expect the Fed to leave policy unchanged amid rising uncertainty from the Middle East conflict. Markets will closely track Fed Chair Jerome Powell's remarks on inflation, employment and growth.
The dollar softened as easing oil prices helped lift investors' appetite for riskier assets. Gold was little changed at $5,005 an ounce, while oil prices fell nearly 2 percent after a surprise build in U.S. crude inventories.
The Middle East war continued to escalate as attacks on the UAE's energy infrastructure heightened fears of prolonged supply disruptions. Iran confirmed the death of its security chief in a further intensification of the conflict.
China's Shanghai Composite Index rose by 0.3 percent to 4,062.98 and Hong Kong's Hang Seng Index closed 0.6 percent higher at 26,025.42 following upbeat remarks from Nvidia's chief executive Jensen Huang on the promise of AI agents and OpenClaw.
Japanese markets rallied as the yen gained on hawkish BoJ bets, alleviating concerns of possible intervention by authorities ahead of a crucial meeting between Prime Minister Sanae Takaichi with U.S. President Donald Trump.
Investors also cheered strong data that showed Japanese exports rose for a sixth straight month in February, beating estimates on strong Asia demand.
The Nikkei 225 Index surged 2.9 percent to 55,239.40, while the broader Topix Index settled 2.5 percent higher at 3,717.41.
SoftBank rallied 5.8 percent, Advantest surged 6.7 percent and Tokyo Electron added 3.9 percent after fresh announcements at Nvidia GTC 2026 fueled optimism over AI demand and next-generation computing.
Seoul stocks led regional gains after Financial Services Commission Chairman Lee Eog-weon announced a ban on double listings, a change investors hope could boost valuations.
The Kospi soared 5.0 percent to 5,925.03, extending gains for a third straight session. A five-minute trading halt was activated earlier after the Kospi 200 futures surged 5 percent. Shares of tech heavyweight Samsung Electronics spiked 7.5 percent and SK Hynix jumped 8.9 percent.
Australian markets eked out modest gains to hit a one-week high, with mining and energy stocks pacing the gainers. The benchmark S&P/ASX 200 Index rose 0.3 percent to 8,640.60, while the broader All Ordinaries Index closed up 0.3 percent at 8,847.20.
Across the Tasman, New Zealand's S&P/NZX-50 Index jumped 1.0 percent to close at 13,315.60, extending gains from the prior session.
U.S. stocks eked out modest gains overnight, extending gains from the previous session as oil resumed its upward move and President Trump wrote in a Truth Social post that the U.S. has decimated Iran's military and that America does not require support from its allies to protect shipping traffic in the Strait of Hormuz.
A key UAE oil loading port, Fujairah, suspended operations again and Israel claimed to have killed Iran security chief Ali Larijani, marking the latest escalation in the Iran war.
The tech-heavy Nasdaq Composite edged up by half a percent, while the S&P 500 and the Dow added 0.3 percent and 0.1 percent, respectively.
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