Investing.com– Most Asian stocks retreated on Wednesday with focus turning to key U.S. economic data for more cues on interest rates, while Chinese markets rose despite heightened concerns over U.S. trade tariffs.
Regional markets mostly ducked a positive lead-in from Wall Street, where strength in technology stocks saw the and hit record highs despite threats of increased trade tariffs from President-elect Donald Trump.
U.S. stock index futures were steady in Asian trade, with focus turning to upcoming data, due later on Wednesday. The reading is the Fed’s preferred inflation gauge, and comes after the of the central bank’s November meeting showed policymakers split over plans for future rate cuts.
A revised reading on third-quarter U.S. data is also due later on Wednesday.
Broader market sentiment remained cautious after Trump announced plans to impose more import tariffs on China, Mexico, and Canada. Analysts noted that these tariffs could dampen recovery prospects for export-driven economies in Asia.
Japan’s index fell 0.6%, while the slid 1%.
South Korea’s edged 0.2% lower, while Thailand’s dropped 0.4%.
The Philippines’ index declined 0.8%, while pointed to a muted start for India’s .
In Australia, the rose 0.7%, driven by mining and financial stocks, benefiting from steady commodity prices. The index was hovering near a record hit hit on Monday.
Data showed that Australia’s rate stayed at a three-year low in October as government rebates drove electricity and rent prices down, though core inflation picked up in a sign of lingering cost pressures.
Chinese stocks jump despite tariff threats
Trump said on Tuesday that he would impose an additional 10% tariff on goods from China and 25% on all products from Mexico and Canada. This measure was to cut down migrants and illegal drugs flowing across U.S. borders, he claimed.
Chinese shares were higher despite Trump’s trade tariff threats against the country. The and indexes rose 0.7%, and 1.1%, respectively, while Hong Kong’s index gained 0.4%. All three indexes had also advanced on Tuesday, albeit slightly.
China’s state media downplayed Trump’s pledge to slap additional tariffs on Chinese goods in editorials late on Tuesday, accusing the President-elect of blaming China for the country’s failure to address the fentanyl crisis, Reuters reported.
Beijing is also expected to dole out more targeted fiscal stimulus to help offset the impact of higher trade tariffs, which bodes well for the economy.
RBNZ cuts cash rate by 50 bps, BOK rate decision due later
The Reserve Bank of New Zealand cut by 50 basis points on Wednesday and signaled further easing early next year, citing subdued domestic economic activity and waning inflationary pressures.
stocks rose slightly, with the up 0.3%.
South Korea’s central bank is also set to decide on on Thursday, with analysts expecting the central bank to stand pat after a 25 bps cut in October.
