Asia-Pacific equities were mixed in early trade on Wednesday as investors balanced Wall Street’s overnight gains with political turmoil at the Federal Reserve, United States tariffs on India, and stronger-than-expected inflation data from Australia.
By 11:30 am AEST (1:30 am GMT), Australia’s S&P/ASX 200 added 0.4%, Japan’s Nikkei 225 lost 1.1%, and South Korea’s Kospi 200 was down 0.8%.
India remained in focus after Washington imposed tariffs of up to 50% on its exports in retaliation for New Delhi’s continued reliance on Russian energy, set to take effect today.
Australian inflation figures also surprised markets. The Australian Bureau of Statistics' monthly consumer price index (CPI) rose 2.8% year-on-year, above forecasts of 2.3% and the prior 1.9% reading, marking the highest rate since July 2024.
The largest contributors were housing, rising 3.6%, food and non-alcoholic beverages, up 3.0%, and alcohol and tobacco, which increased 6.5%.
As of 25 August, the ASX's RBA Rate Tracker showed a 32% probability of a rate cut to 3.35% at the next policy meeting.
In the U.S., major indices finished higher on Tuesday. The Dow Jones Industrial Average rose 0.3%, while the S&P 500 and Nasdaq Composite each gained 0.4%.
Commodities moved in different directions. Brent crude fell 2.2% to US$66.70 per barrel, while spot gold advanced 0.8% to US$3,393.75 per ounce.
Chinese markets retreated from their recent rally. The Shanghai Composite closed 0.4% lower at 3,868.4, while the CSI 300 also slipped 0.4% to 4,452.6.
Hong Kong’s Hang Seng Index dropped 1.2% to 25,524.9, and India’s BSE Sensex lost 1% to 80,786.5.
In Europe, markets ended Tuesday in negative territory. The FTSE 100 fell 0.6% to 9,265.8, Germany’s DAX eased 0.5% to 24,152.9, and France’s CAC 40 tumbled 1.7% to 7,709.8.
