Asia-Pacific markets traded mixed on Wednesday, with South Korean technology stocks staging a strong recovery after a sharp global equity sell-off in the previous session.
By 11:35 am AEST (1:35 am GMT), Australia's S&P/ASX 200 had edged 0.2% higher, South Korea's KOSPI 200 had gained 3.5%, while Japan's Nikkei 225 fell 0.5%.
Technology shares led gains in Seoul, with Samsung Electronics surging 6% and SK Hynix advancing 2.2%.
The rebound followed steep declines on Tuesday, when both companies lost more than 12% amid a broad sell-off in global semiconductor stocks.
Investors also digested fresh signals from the Bank of Japan that further monetary policy tightening may be required.
The Bank of Japan's summary of opinions from its 15-16 June meeting showed board members favouring additional interest rate increases to move policy settings closer to levels considered neutral for the economy.
The central bank raised interest rates to a 31-year high of 1% at the June meeting, marking another step in its policy normalisation process as policymakers respond to inflationary pressures, including those linked to higher energy costs.
One board member stated:
"Unlike in the United States and Europe, Japan's policy interest rate remains below the estimated range of the neutral interest rate. It is necessary to bring the policy rate closer to the neutral rate as soon as possible and thereby ensure the flexibility needed to swiftly adjust the policy rate in either direction."
Another member added:
"To avoid rapid and significant policy interest rate hikes, the Bank should bring the policy rate closer to the neutral rate sooner. The neutral interest rate appears to be at around 2 percent, and taking this into account, it is desirable to assess economic activity and prices as well as financial developments and to consider whether to raise the policy interest rate as appropriate with intervals of a few months in mind."
In Australia, headline inflation data came in softer than expected, providing some relief for investors.
The Consumer Price Index (CPI) rose 4.0% in the 12 months to May 2026, according to data released by the Australian Bureau of Statistics (ABS).
The result was below market expectations for a 4.4% increase and down from the 4.2% annual rate recorded in April.
However, underlying inflation pressures remained elevated. The trimmed mean inflation measure accelerated to 3.6% from 3.4% in the previous month, exceeding expectations of 3.5%.
The regional market performance followed a weak session on Wall Street overnight, where technology stocks led declines. The Dow Jones Industrial Average slipped 0.1%, the S&P 500 fell 1.4%, and the Nasdaq Composite dropped 2.2%.
Commodity markets also weakened on Tuesday. Brent crude futures fell 1.1% to settle at US$77.08 a barrel, while spot gold declined 1.9% to US$4,111.18 an ounce.
Elsewhere in Asia, Chinese equities came under pressure. The Shanghai Composite Index fell 1.4% to 4,106.3, while the CSI 300 dropped 2.8% to 4,919.4.
Hong Kong's Hang Seng Index slid 1.8% to 23,336.3, its lowest level since June 23, while India's BSE Sensex declined 1.2% to close at 76,200.7.
European markets also ended lower on Tuesday. The UK's FTSE 100 slipped 0.1% to 10,428.9, Germany's DAX fell 1% to 24,893.6, and France's CAC 40 lost 0.7% to 8,340.7.
