Asian stocks traded mixed on Wednesday, following varied cues from Wall Street overnight. Traders cautiously watched developments on the tariff front as the July 9 deadline set by US President Donald Trump approached. US Fed Chair Jerome Powell stated that the looming threat of a global trade war prevented the Fed from slashing interest rates.
In Australia, shares traded notably higher, reversing slight losses from the previous session. The benchmark S&P/ASX 200 Index gained 21.20 points or 0.25 percent to 8,562.30. Iron ore miners and energy stocks saw notable gains.
BHP Group and Rio Tinto gained just over 1 percent each, while Fortescue Metals added almost 3 percent. Origin Energy edged up 0.2 percent in the oil sector. Block gained more than 1 percent in the tech space.
Major banks showed mixed performance, with Westpac losing almost 1 percent. Japanese stocks traded significantly lower, extending sharp losses from the previous session. The Nikkei 225 Index fell 392.61 points or 0.98 percent to 39,593.72.
Weakness in financial stocks and other sectors was compounded by threats from Trump to impose a 35 percent tariff on Japanese imports. SoftBank Group lost almost 2 percent. Advantest and Tokyo Electron declined in the tech sector.
Sumitomo Mitsui Financial and Mizuho Financial fell in the banking sector. Elsewhere in Asia, stock markets in New Zealand, Hong Kong, Singapore, and Malaysia traded higher by between 0.3 and 0.9 percent each.
Trade tensions affect Asian stocks
South Korea, Taiwan, and Indonesia traded lower by between 0.4 and 1.2 percent each. China was relatively flat. On Wall Street, stocks turned in a mixed performance on Tuesday.
The Dow showed a notable advance to reach its best closing level in over four months. However, the Nasdaq and the S&P 500 gave back ground. The Dow jumped 400.17 points or 0.9 percent to 44,494.94.
The S&P 500 edged down 6.94 points or 0.1 percent to 6,198.01. The Nasdaq slid 166.84 points or 0.8 percent to 20,202.89. In Europe, major markets ended the day mixed.
The UK’s FTSE 100 Index rose 0.3 percent. The French CAC 40 Index closed just below the unchanged line. The German DAX Index slumped by 1.0 percent.
Crude oil prices rose modestly on Tuesday. West Texas Intermediate crude for August delivery traded at $65.40 per barrel, up $0.29 or 0.45 percent. Attention shifted to OPEC’s plans to increase output.
The Aussie dollar traded at $0.657 on Wednesday. The US dollar traded in the lower 143 yen-range in currency markets.
