Asian-Pacific equities were mixed on Wednesday as investors assessed rising global bond yields, fresh regional growth data, and continued uncertainty over United States trade policy.
By 11:20 am AEST (1:20 am GMT), Australia’s S&P/ASX 200 fell 0.6%, Japan’s Nikkei 225 slipped 0.3%, while South Korea’s Kospi 200 was little changed, up 0.02%.
Among data releases, South Korea’s economy grew 0.7% in the June quarter, a marginal improvement on the advance estimate and rebounding from a 0.2% contraction in the first quarter.
Australia also posted slightly stronger-than-expected growth, with gross domestic product (GDP) expanding 0.6% according to the Australian Bureau of Statistics, ahead of forecasts for 0.5% and accelerating from 0.3% in the March quarter.
“Economic growth rebounded in the June quarter following subdued growth in the March quarter, which was heavily impacted by weather events,” said Tom Lay, ABS head of national accounts.
On a year-over-year basis, GDP accelerated to 1.8%, the highest reading since September 2023.
Australia’s services sector showed further momentum, with S&P Global's purchasing managers' index (PMI) data climbing to 55.8 from 54.1, marking the strongest pace of growth in over three years.
Japan’s Services PMI eased to 53.1 from 53.6 but still reflected a solid expansion, with firms reporting stronger orders, higher costs, and the first fall in staffing levels in nearly two years.
In China, attention is fixed on President Xi Jinping’s scheduled speech at a military parade marking the 80th anniversary of the end of World War II.
The event was set to host 26 world leaders, including Russian President Vladimir Putin and North Korea’s Kim Jong Un.
Overnight in the U.S., Wall Street retreated as the Dow Jones Industrial Average lost 0.6%, the S&P 500 dropped 0.7%, and the Nasdaq Composite declined 0.8%.
In commodities, Brent crude climbed 1.5% to US$69.14 a barrel, hitting multiweek highs, while spot gold surged 1.6% to a record US$3,533.55 an ounce.
In China on Tuesday, the Shanghai Composite fell 0.5% to 3,858.1, while the CSI 300 dropped 0.7% to 4,490.5.
Hong Kong’s Hang Seng Index declined 0.5% to 25,496.6, but India’s BSE Sensex added 0.3% to close at 80,157.9.
European equities also moved lower, with London’s FTSE 100 slipping 0.9% to 9,116.7, Germany’s DAX tumbling 2.3% to 23,487.3, and France’s CAC 40 easing 0.7% to 7,654.3.
