Asia-Pacific markets traded mixed on Wednesday as escalating United States-Canada trade tensions added to investor caution ahead of key U.S. inflation data and closely watched earnings from technology giant Nvidia.
By 11:45 am AEST (1:45 am GMT), Australia's S&P/ASX 200 was up 0.4%, while Japan's Nikkei 225 fell 0.2% and South Korea's KOSPI 200 declined 0.1%.
In South Korea, business sentiment rose to a near four-year high in August, supported by stronger confidence in the manufacturing sector and an improved outlook for services during the summer holiday season, according to a central bank survey.
The Composite Business Sentiment Index for all industries rose 1.1 points from the previous month to 99.6 in August, data from the Bank of Korea showed on Wednesday.
Meanwhile, Australian inflation came in slightly above market expectations. The Consumer Price Index (CPI) rose 3.5% in the 12 months to July, easing from a 3.8% increase in the year to June 2026 but coming in above the 3.3% expected.
Rachael McCririck, ABS head of price statistics, said: “Housing rose by 5.0% in the 12 months to July due to rising costs for New dwellings. New dwellings prices rose 5.7% in the 12 months to July as builders passed on higher costs for materials and labour.”
In the U.S. on Tuesday, major benchmarks finished higher, with the Dow Jones Industrial Average rising 0.3%, the S&P 500 gaining 0.3% and the Nasdaq Composite advancing 0.7%.
In commodities, ICE Brent crude finished 3.6% lower at US$87.27 a barrel, while spot gold edged 0.1% higher to US$4,657.56 an ounce.
In China, the SSE Composite Index gained 0.2% to 3,889.4, while the CSI 300 fell 0.2% to 4,552.0.
Hong Kong's Hang Seng Index finished little changed at 25,511.1, while India's BSE Sensex rose 0.4% to 77,656.1.
European markets finished mixed on Tuesday. The UK's FTSE 100 rose 0.3% to 10,886.2, Germany's DAX gained 0.6% to 26,266.1, while France's CAC 40 fell 0.2% to 8,439.2.
