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Shares logged modest gains in Asia after Wall Street benchmarks ended just below their records following a day of choppy trading.

US futures edged higher as investors awaited an earnings update from computer chip giant Nvidia due after trading ends Wednesday in New York. The artificial intelligence bellwether's quarterly report is expected to help clarify whether markets have been soaring on an overhyped bubble or if AI is a technology boom in the making.

Japan's Nikkei 225 rose 0.3 per cent to 42,522.97, while the Kospi in Seoul was up just over 1 point to 3,181.31.

Hong Kong's Hang Seng also edged less than 0.1 per cent higher, to 25,541.43, and the Shanghai Composite index advanced 0.3 per cent to 3,881.07.

In Australia, the S&P/ASX 200 was up 0.1 per cent at 8,948.30.

Taiwan's Taiex climbed 0.7 per cent, and the SET in Bangkok was up 0.4 per cent.

Markets in India were closed for a public holiday, as 50 per cent tariffs on exports to the United States took effect. The move by US President Donald Trump was expected to hit labour-intensive sectors like textile manufacturing especially hard.

On Wednesday, the S&P 500 closed 0.4 per cent higher at 6,465.94. The Dow gained 0.3 per cent to 45,418.07 and the Nasdaq added 0.4 per cent to 21,544.27.

Boeing rose 3.5 per cent for one of the biggest gains among S&P 500 companies after Korean Air announced a USD 50 billion deal with the company that includes buying more than 100 aircraft. Dish Network parent EchoStar surged 70.2 per cent after AT&T said it will buy some of its wireless spectrum licenses in a USD 23 billion deal.

A report said consumer confidence declined modestly in August as anxiety over a weakening job market grew for the eighth straight month. The small decline from The Conference Board's monthly survey was mostly in line with economists' projections.

Wall Street notched big gains last week on hopes for interest rate cuts from the Federal Reserve.

But markets were subdued after President Donald Trump escalated his fight with the Federal Reserve by saying he's firing Federal Reserve Governor Lisa Cook. Cook's lawyer said she'll sue Trump's administration to try to stop him.

Trump has been feuding with the central bank over its cautious interest rate policy. The Fed has held rates steady since late 2024 over worries that Trump's unpredictable tariff policies will reignite inflation. Trump has also threatened to fire Fed Chair Jerome Powell, often taunting him with name-calling. Still, he is only one of 12 votes that decides interest rate policy.

Traders are still betting the Fed will trim its benchmark interest rate at its next meeting in September. Traders see an 87 per cent chance that the central bank will cut the rate by a quarter of a percentage point, according to data from CME Group.

The Federal Reserve cut its benchmark interest rate in late 2024 after spending the last several years fighting rising inflation by raising interest rates. It managed to tame inflation mostly and avoided having those higher rates stall economic growth, thanks largely to strong consumer spending and a resilient job market.

The Fed hit the pause button heading into 2025 over concerns that higher tariffs imposed by Trump could reignite inflation. Lower interest rates make borrowing easier, helping to spur more investment and spending, but that could also potentially fuel inflation. However, concerns are deepening over the jobs market.

Friday will bring another update on inflation, the US personal consumption expenditures index. Economists expect it to show that inflation remained at about 2.6 per cent in July, compared with a year ago. Businesses have been warning investors and consumers about higher costs and prices because of tariffs.

In other dealings early Wednesday, US benchmark crude oil edged up 1 cent to USD 63.26 a barrel. Brent crude, the international standard, slipped 1 cent to USD 66.69 a barrel.

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The US dollar rose to 147.91 Japanese yen from 147.43 yen. The euro fell to USD 1.1618 from USD 1.1643.