Asia-Pacific equity markets closed mixed on Wednesday, as investor sentiment was buoyed by a rebound on Wall Street following US President Donald Trump’s decision to delay the implementation of a proposed 50% tariff on European Union imports until July 9.
The move provided a temporary reprieve to global trade tensions, lifting some investor confidence across major markets.
In Japan, the Nikkei 225 and Topix indices were little changed, ending the session essentially flat at 37,722.40 and 2,769.51 respectively. South Korea’s Kospi outperformed the region with a 1.25% gain to close at 2,670.15, supported by strong performance in technology shares, including Samsung Electronics and SK Hynix. The smaller Kosdaq Index also rose modestly by 0.23% to 728.79.
Australia’s S&P/ASX 200 slipped 0.13% to 8,396.90 amid inflation data showing consumer prices rose 2.4% in April—slightly above expectations and consistent with February’s figure. The persistent inflation reading may raise questions about future interest rate decisions from the Reserve Bank of Australia.
Meanwhile, Hong Kong’s Hang Seng Index fell 0.55% to 23,258.31, weighed down by investor concerns following lackluster demand in Japan’s 40-year government bond auction and ongoing worries over sovereign debt levels. Mainland China’s CSI 300 closed flat at 3,836.24, reflecting cautious sentiment despite improving trade signals from the US.
India’s Nifty 50 also dipped slightly by 0.17%, and Taiwan’s Taiex managed a modest 0.1% gain. In New Zealand, the central bank reduced its benchmark interest rate by 25 basis points to 3.25%, in line with expectations. The New Zealand dollar strengthened slightly following the announcement, trading at 0.5947 against the US dollar.
Global markets responded positively to Wall Street’s strong performance overnight. The Dow Jones Industrial Average surged 740.58 points, or 1.78%, to 42,343.65. The S&P 500 climbed 2.05% to 5,921.54, while the Nasdaq Composite jumped 2.47% to 19,199.16. The rally was driven in part by optimism surrounding a possible easing of trade tensions and by gains in tech stocks such as Tesla and Nvidia. Investors also looked ahead to Nvidia’s earnings report and the release of the Federal Reserve’s May meeting minutes.
However, analysts remain cautious. Lucy Baldwin, global head of research at Citi, described the latest US stock rally as potentially “the calm before a storm,” pointing to the economic drag caused by existing tariffs and elevated unemployment levels. Citi forecasts a 125 basis point reduction in US interest rates between July and January.
Bond markets were also in focus after Japan’s 40-year government bond auction drew a bid-to-cover ratio of just 2.21, the lowest since July 2024. Analysts said the result signaled weaker demand amid growing global concerns over government debt burdens. Yields on Japanese bonds rose, and the Japanese yen fell slightly against the dollar.
Oil prices ticked higher after the expiration of a US waiver allowing Chevron to export Venezuelan crude. US crude rose by 45 cents to $61.35 per barrel, while Brent crude gained 42 cents to $63.99.
The Associated Press, the Wall Street Journal, and CNBC contributed to this report.
