Asian stock markets traded mixed on Wednesday, following varied cues from Wall Street overnight. Traders are cautiously watching developments on the tariff front as the July 9 deadline set by U.S. President Donald Trump approaches. U.S. Federal Reserve Chair Jerome Powell stated that the looming threat of a global trade war has prevented the Fed from slashing interest rates.
Concerns about slowing U.S. growth and an increase in national debt due to a new tax bill weighed down on the U.S. dollar, leading to its weakening against major currencies in the region. Australian shares traded notably higher on Wednesday, reversing slight losses from the previous session. The benchmark S&P/ASX 200 moved above the 8,550 level, with gains in iron ore miners and energy stocks.
The Japanese stock market was significantly lower on Wednesday, extending sharp losses from the previous session, with weakness in tech and financial stocks. The market was pressured after U.S. President Donald Trump threatened to impose a 35 percent tariff on Japanese imports.
Mixed sentiments in Asian markets
Elsewhere in Asia, New Zealand, Hong Kong, Singapore, and Malaysia experienced increases of between 0.3 and 0.9 percent each, while South Korea, Taiwan, and Indonesia saw decreases of between 0.4 and 1.2 percent each. China was relatively flat. On Wall Street, stocks turned in a mixed performance during trading on Tuesday.
The Dow showed a notable advance to reach its best closing level in over four months, while the Nasdaq and the S&P 500 gave back ground. The major European markets also ended the day mixed. The U.K.’s FTSE 100 Index rose 0.3 percent, the French CAC 40 Index closed just below the unchanged line, and 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.
