Global market wrap: Asian stocks edge higher as oil prices retreat; Fed rate hike fears loom

We are back with quick updates on global developments around stock markets, commodities and companies that you should not miss today.

Asian stocks edged higher on Wednesday as oil prices took a breather. Investors also awaited the US Federal Reserve’s decision on interest rates to be announced later today.

On Wednesday, South Korea’s Kospi index gained nearly 1% to 6,690, while Japan’s Nikkei index rose 0.3% to 63,694.

China’s Shanghai Composite index was up 0.6% to 3,886, while Hong Kong’s Hang Seng Index was trading just around 0.1% higher at 24,697.

Australia’s S&P/ASX 200 rose 0.3% to 8,696 on Wednesday, while Singapore’s Straits Times was up 0.2% to 5,648.

US stock futures were also trading in the positive zone on Wednesday. S&P 500 futures, futures tied to the Dow and Nasdaq 100 futures all rose around 0.2% each.

In the regular trading session on Tuesday, the S&P 500 dropped 0.45%, the Nasdaq Composite declined 0.8%, while the Dow Jones Industrial Average slipped 0.6%.

Oil prices retreated slightly on Wednesday after a report said that US energy inventories rose last week. The US crude oil futures for October delivery lost 1.1% to $104.64 per barrel at 0027 EDT, while Brent futures for November delivery was down 0.7% to $108 per barrel.

Gold prices recovered on Wednesday after hitting one-month low as markets seems to have already priced in the expected Fed rate hike.

US gold futures for ​December delivery rose 0.7% to $4,363 per ounce, while spot gold also gained 0.7% to $4,322 per ounce by 0427 GMT.

Here’s a look at the other key developments of the day:

Meta’s Mark Zuckerberg says AI labs have enough incentive to build safely

At a time when leaders of top AI firms are calling for a coordinated slowdown in AI development, Meta ​Platforms CEO Mark Zuckerberg showed his disagreement to this approach on Tuesday.

In an X post on Tuesday, Zuckerberg said that every AI lab has the responsibility and incentive to move at the pace required to train its models safely, and the ability to ⁠take its own actions to ensure that happens.

His remarks come three days after Anthropic CEO Dario Amodei urged AI companies to slow ​the pace at which they improve model capabilities.

BoJ may raise rates by 25 basis points to fresh three-decade high

The Bank of Japan (BoJ) is likely to raise rates to 1.25% at the end of its two-day meeting on Friday amid inflationary pressures, according to a report.

A hike would signal an acceleration of the tightening cycle, faster than the six-month interval the Bank has been following since it started policy normalization in March 2024. The BOJ last raised rates in June.

Japan’s headline inflation rate for July hit its highest this year, at 1.9%, due to increased energy costs from the Iran war. In the same month, real wages rose 2.4%, rising for the seventh month in a row.

Grab to acquire Singapore’s buy-now pay-later platform Atome

Grab announced on Tuesday that it was buying Singapore-based buy-now, pay-later platform Atome Financial. The stock closed down 3.6% on Nasdaq after the announcement.

Grab said it would acquire an initial 60% controlling stake in Atome for $1.49 billion in cash, with plans to buy the remaining 40% roughly two years after the first transaction closes.

The acquisition is part of Grab’s push to scale its financial services business beyond its existing offerings, with the company betting that Atome can help expand its reach in consumer lending.

Australia’s Reliance Worldwide agrees to Brookfield's $2.9 billion buyout bid

Australian plumbing supplies company Reliance Worldwide said ‌it has agreed to a roughly $2.9 billion buyout from global investment firm Brookfield. Shares of Reliance Worldwide jumped more than ​7% in early trade on Wednesday to A$4.65, their highest level since May last year.

“The board is ​unanimous in its view that this transaction is in the best interests ​of RWC shareholders,” said Reliance Worldwide Chair Russell Chenu in a statement. The buyout bid was seen as good news for the company as it was facing the impact of US tariffs and economic uncertainty.

Trip.com shares jump after Q2 adjusted earnings, revenue top estimates

Chinese multinational company Trip.com Group shares rose over 3% in Hong Kong on Wednesday after the travel platform reported stronger-than-expected adjusted earnings for the second quarter, with revenue also edging above estimates.

Trip.com reported second-quarter revenue of RMB15.66 billion, up 6% from a year earlier and above the consensus estimate of RMB15.56 billion. The bigger positive came from adjusted earnings. Non-GAAP diluted earnings came in at RMB7.27 per share, much higher than estimates. The stock rose 3.15% to HK$321 in late trading.