Asia-Pacific markets opened mixed on Wednesday as investors balanced easing geopolitical tensions in the Middle East with caution ahead of the United States Federal Reserve’s interest rate decision.
By 11:55 am AEST (1:55 am GMT), Australia’s S&P/ASX 200 had gained 0.3%, Japan’s Nikkei 225 lifted 0.7% to hover near record highs from the previous session, while South Korea’s KOSPI 200 eased 0.1%.
In economic data, Japan’s trade balance swung to a ¥378.67 billion (A$3.34 billion) deficit in May on an unadjusted basis, according to the Ministry of Finance, compared with expectations for a ¥564.6 billion shortfall.
Exports rose 17% year-on-year in May, marking the fastest growth since November 2022 and exceeding expectations of 16.2%. The increase was driven by strong demand for automobiles and semiconductors.
Growth was supported by a 17.9% jump in shipments to China and a 12.5% rise in exports to the United States. Imports rose 12.5% year-on-year, the strongest growth since January 2025, though slightly below forecasts of 12.8%.
In a separate release, Japan’s private-sector machinery orders, excluding volatile ship and utility-related demand, increased 8.7% in April on a seasonally adjusted basis.
The result significantly exceeded expectations for a 0.9% gain and marked a sharp rebound from a 9.4% decline previously.
The data followed the Bank of Japan’s decision on Tuesday to raise its policy rate by 25 basis points to 1%, the highest level in 31 years, as inflationary pressures build and the yen remains weak.
On Wall Street overnight, U.S. benchmarks ended mixed in the previous session, with the Dow Jones Industrial Average rising 0.6% to extend record highs, while the S&P 500 fell 0.6% and the Nasdaq Composite dropped 1.2%.
In commodities, Brent crude fell 5.1% to US$78.96 per barrel, its lowest level since 3 March, while spot gold rose 0.5% to US$4,330.99 per ounce.
In China, the SSE Composite Index eased 0.1% to 4,091.9, and the CSI 300 slipped 0.2% to 4,884.2.
Hong Kong’s Hang Seng Index declined 1.4% to 24,494.0, while India’s BSE Sensex gained 0.7% to 76,808.5.
European markets closed higher across the board on Tuesday, with the UK’s FTSE 100 rising 0.6% to 10,494.2, Germany’s DAX adding 0.1% to 24,910.4, and France’s CAC 40 gaining 0.8% to 8,447.3.
