Morning brief: Fed decision looms, Asian stocks climb, Mitsui shares surge

Global investors remained cautious but steady on Wednesday as they tracked the Federal Reserve, easing oil prices and gains across Asian equities.

The backdrop remained fragile, with the Iran conflict clouding the rate outlook, crude slipping on a surprise US inventory build, and Mitsui O.S.K. shares jumping after Elliott disclosed a significant stake.

Together, the headlines set up a morning defined by geopolitics, policy nerves and company-specific action.

Fed decision in focus

The US Federal Reserve is widely expected to leave interest rates unchanged at the end of its March 17-18 meeting, keeping the benchmark rate in the 3.5% to 3.75% range.

The policy debate has been shaken by the Iran conflict, which has added volatility in oil prices and revived inflation worries.

That leaves officials weighing whether energy-driven price pressures will prove temporary or force a longer pause in any easing cycle.

Economists still mostly expect a first cut in June, but market expectations have shifted later as the war adds uncertainty.

Oil dips on inventory build

Oil prices edged lower on Wednesday after industry data pointed to a surprise build in US crude inventories.

Brent crude fell about 1.1% to $102.27 a barrel, while US West Texas Intermediate dropped 1.6% to $94.67 in early trade.

Market sources, citing American Petroleum Institute figures, said US crude stocks rose 6.56 million barrels last week.

Prices were also pressured by news that Iraq and the Kurdistan Regional Government had agreed to restart exports through Turkey’s Ceyhan hub.

Still, losses were limited as tensions around Iran and the Strait of Hormuz kept traders alert to fresh disruption risks.

Asian stocks climb

Asian shares climbed on Wednesday as oil prices pulled back, giving investors some relief after days of war-driven volatility and shifting the focus back to the Federal Reserve.

The investors gained across Japan, Australia and Hong Kong after Wall Street advanced, helped by a sharp rebound in technology stocks.

The calmer mood followed a cooling in crude prices, which had surged earlier on fears that conflict around Iran could disrupt flows through the Strait of Hormuz.

Investors are now watching the Fed’s policy decision for clues on how officials view the inflation risks tied to higher energy costs.

Elliott lifts Mitsui shares

Shares of Mitsui O.S.K. Lines jumped more than 11% on Wednesday and hit a record high after investor Elliott Investment Management disclosed a significant stake in the Japanese shipping company.

Elliott said it sees Mitsui as a strong global vessel owner whose business and assets are being materially undervalued by the market.

The fund added that it wants to work with management so the company’s upcoming medium-term plan is ambitious enough to unlock a higher valuation.

The move comes as investor pressure on Japanese companies to improve capital efficiency and governance continues to build.

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