Asia-Pacific markets traded mixed on Wednesday, reflecting a cautious optimism following Wall Street’s strong rebound overnight. Gains in U.S. equities were driven by investor relief after President Joe Biden extended the deadline for a proposed 50% tariff on European Union imports to July 9.
Japan’s Nikkei 225 rose 0.31%, and the broader Topix added 0.42%. South Korea’s Kospi led regional gains with a 1.78% jump, while the tech-heavy Kosdaq climbed 0.66%.
In Australia, the S&P/ASX 200 slipped 0.13% despite higher-than-expected April inflation figures. Consumer prices rose 2.4% year-on-year, unchanged from March but slightly above Reuters' forecast of 2.3%, spurred by travel demand and rising insurance costs.
Hong Kong’s Hang Seng Index dropped 0.55%, while China’s CSI 300 index remained flat. India’s Nifty 50 also posted a modest decline of 0.17%.
New Zealand’s Reserve Bank lowered its benchmark cash rate by 25 basis points to 3.25%, citing easing inflation and spare capacity in the economy. The move, expected by analysts, marked the sixth consecutive cut since August. The New Zealand dollar strengthened slightly to 0.5947 against the U.S. dollar.
Markets across the region are also awaiting key earnings results from Nvidia and the release of minutes from the Federal Reserve’s May policy meeting, both scheduled for later Wednesday U.S. time.
Overnight, U.S. stocks surged across the board. The Dow Jones Industrial Average rallied 740 points, or 1.78%, closing at 42,343.65. The S&P 500 gained 2.05%, while the Nasdaq Composite jumped 2.47%, fueled by sharp gains in technology stocks including Tesla.
Despite ongoing concerns over global trade policies and inflation trends, sentiment appears buoyed by central bank moves and the temporary reprieve from U.S.-EU tariff escalation.
