Asia-Pacific markets traded mixed on Wednesday as investors weighed a ceasefire between Israel and Iran alongside fresh comments from the United States Federal Reserve, following a strong performance on Wall Street overnight.
By 11:10 am AEST (1:10 am GMT), Australia's S&P/ASX 200 was little changed, while Japan’s Nikkei 225 edged down 0.1%. South Korea’s Kospi 200 advanced 0.4%.
On the data front, the Australian Bureau of Statistics reported that Australia's monthly inflation indicator rose 2.1% in the 12 months to May, down from 2.4% in the previous period and below expectations of a 2.3% increase.
Michelle Marquardt, ABS head of prices statistics, noted: “Annual trimmed mean inflation was 2.4% in May 2025, down from 2.8% in April. This is the lowest annual trimmed mean inflation rate since November 2021.”
Overnight in the United States, major benchmarks extended gains. The Dow Jones Industrial Average rose 1.2%, the S&P 500 climbed 1.1%, and the Nasdaq Composite gained 1.4%.
Federal Reserve Chair Jerome Powell reiterated on Tuesday that the central bank remains focused on inflation and is in no hurry to change interest rates. “We are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,” Powell said.
In commodities, Brent crude dropped 7.4% to settle at US$66.17 per barrel amid easing geopolitical risk, while spot gold slid 1.4% to US$3,323.45 per ounce.
Chinese markets outperformed, with the Shanghai Composite gaining 1.2% to 3,420.6 and the CSI 300 also up 1.2% to 3,904.
Hong Kong’s Hang Seng Index surged 2.1% to 24,177.1. In India, the BSE Sensex added 0.2% to close at 82,055.1.
In Europe, markets mostly ended higher. The UK’s FTSE 100 closed flat at 8,759, while Germany’s DAX rose 1.6% to 23,641.6 and France’s CAC 40 added 1% to finish at 7,616.0.
