Asia-Pacific markets traded lower on Wednesday, following Wall Street’s retreat after Federal Reserve Chair Jerome Powell said that “equity prices are fairly highly valued”, curbing risk appetite across global markets.
By 11:40 am AEST (1:40 am GMT), Australia’s S&P/ASX 200 was down 0.7%, Japan’s Nikkei 225 slipped 0.4%, and South Korea’s Kospi 200 lost 0.6%.
In Japan, S&P Global’s latest purchasing managers’ index showed manufacturing activity softening to 48.4 in September, down from 49.7 a month earlier, while services eased slightly to 53 from 53.1.
In Australia, the Australian Bureau of Statistics (ABS) monthly CPI indicator rose to 3% in August, the highest annual inflation rate since July 2024 and above market expectations of 2.9%, putting inflation at the top end of the Reserve Bank of Australia’s 2–3% target band.
The moves followed overnight losses in the U.S., where the Dow Jones Industrial Average slipped 0.2%, the S&P 500 fell 0.6%, and the Nasdaq Composite lost 1% as major benchmarks retreated from record highs.
Commodities extended gains, with Brent crude climbing 1.6% to settle at US$67.63 a barrel.
Spot gold added US$17.85, or 0.5%, to reach a fresh record of US$3,764.2 per ounce.
Chinese equities were weaker on Tuesday, with the Shanghai Composite down 0.2% at 3,821.8 and the CSI 300 slipping 0.1% to 4,519.8.
Hong Kong’s Hang Seng Index fell 0.7% to 26,159.1, while India’s BSE Sensex eased 0.1% to close at 82,102.1.
In Europe, markets closed mixed on Tuesday. London’s FTSE 100 edged down 0.04% to 9,223.3, while Germany’s DAX gained 0.4% to 23,611.3 and France’s CAC 40 rose 0.5% to 7,872.0.
