Asia-Pacific markets traded mixed on Wednesday, as investor sentiment took a hit following the announcement of a new trade agreement between the United States and Indonesia.
U.S. President Donald Trump said Tuesday he had reached a preliminary deal with Jakarta that will see a 19% tariff imposed on Indonesian exports to the U.S., fuelling fresh concerns over global trade dynamics.
By 11:20 am AEST (1:20 am GMT), Australia’s S&P/ASX 200 had fallen 0.8%, pulling back from Tuesday’s record highs. Japan’s Nikkei 225 managed a modest gain, rising 0.2%, while South Korea’s Kospi 200 slipped 0.5%.
Among data releases, South Korea’s unemployment rate ticked down to 2.6% on a seasonally adjusted basis.
However, import prices dropped for the fifth straight month in June, reflecting ongoing deflationary pressures amid a stronger won.
Data from the Bank of Korea showed the import price index fell 0.6% month-on-month in June, following a 3.7% decline in May.
Export prices were also weaker, falling 1.1%, marking a third consecutive monthly decline.
In Australia, fresh data from the Australian Bureau of Statistics (ABS) showed a notable rebound in construction activity. In seasonally adjusted terms, the total number of dwelling commencements rose 11.7% to 47,645 in the quarter.
New private sector house commencements increased 6.3% to 27,923, while other residential commencements surged 21.8% to 18,161. The value of total building work done edged up 0.5% to A$38.9 billion.
Overnight in the United States, the major indices ended mixed. The Dow Jones Industrial Average fell 1%, dragged down by weakness in financials and industrials. The S&P 500 slipped 0.4%, while the Nasdaq Composite edged up 0.2% to post another record high.
In commodities, oil and gold prices fell. Brent crude dipped 0.7% to US$68.71 per barrel amid ongoing concerns about demand resilience. Spot gold dropped 0.6% to US$3,325 per ounce, with investor appetite subdued ahead of further U.S. inflation data expected later this week.
Across greater Asia, Chinese equities saw a mixed performance on Tuesday. The Shanghai Composite slipped 0.4% to 3,505.0, while the CSI 300 remained largely flat at 4,019.1.
Hong Kong’s Hang Seng Index bucked the trend, climbing 1.6% to close at a multi-month high of 24,590.1, while India’s BSE Sensex also rose, up 0.4% to 82,570.9.
European markets closed lower, reflecting concerns over the trade headlines and weaker commodity prices. London’s FTSE 100 shed 0.7% to 8,938.3, Germany’s DAX declined 0.4% to 24,060.3, and France’s CAC 40 dropped 0.5% to 7,766.2.
