Asian markets retreated on Wednesday as investors weighed the policy outlook of Japan’s new government and digested trade data showing weaker-than-expected export growth.
Japan's first female Prime Minister Sanae Takaichi and her cabinet were sworn in on Tuesday, also ushering in Japan’s first female finance minister, Satsuki Katayama, and appointing former leadership rival Shinjiro Koizumi as defence minister.
By 12:10 pm AEDT (1:10 am GMT), Australia’s S&P/ASX 200 was down 0.8%, Japan’s Nikkei 225 fell 1.2%, and South Korea’s Kospi 200 slipped 0.3%.
All three benchmarks had closed at record highs in the previous session.
Japan’s September trade report showed exports climbing 4.2% year on year, snapping a four-month losing streak amid strong shipments to Asia. However, the figure missed market forecasts of a 4.6% rise.
Imports increased 3.3%, well above the 0.6% expected, reversing a 5.2% contraction in the previous month.
In South Korea, producer prices rose in September, driven by higher costs for agricultural and livestock products and the expiry of temporary government subsidies on mobile and electricity bills.
The producer price index (PPI) rose 0.4% month-on-month to 120.54, according to preliminary data from the Bank of Korea.
On a yearly basis, prices climbed 1.2%, marking the 26th consecutive month of gains - reinforcing expectations of persistent inflation pressures.
Overnight in the United States, Wall Street ended mixed. The Dow Jones Industrial Average gained 0.5% to notch a record close, while the S&P 500 ended flat and the Nasdaq Composite slipped 0.2%.
In commodities, Brent crude added 0.5%, rebounding from multi-month lows to settle at US$61.32 per barrel. Spot gold plunged 5.3% - its steepest one-day drop in over a decade - as investors took profits following a nine-week rally. The metal ended the session at US$4,125.27 per ounce.
Mainland Chinese equities fared better, with the Shanghai Composite rising 1.4% to 3,916.3 and the CSI 300 gaining 1.5% to 4,607.9. Hong Kong’s Hang Seng Index added 0.7% to 26,027.6, while India’s BSE Sensex inched 0.1% higher to close at a new yearly peak of 84,426.3.
European shares also edged higher on Tuesday. The FTSE 100 gained 0.3% to 9,427, Germany’s DAX added 0.3% to 24,330.0, and France’s CAC 40 advanced 0.6% to finish at 8,258.9.
