(Sharecast News) - Markets across the Asia-Pacific region ended mostly lower on Wednesday, tracking overnight losses on Wall Street and renewed concerns over global trade tensions.
Investor caution was evident as quarterly earnings were digested and fears of escalating tariffs resurfaced.
"Overnight, US markets lost early gains and closed lower as president Trump's ongoing tariff disputes with trading partners kept investors wary despite strong equity reports from major financial firms," said TickMill market strategy partner Patrick Munnelly.
"Trump called on China to start trade talks, signalling no immediate resolution to the tariff war.
"Meanwhile, China reportedly stopped Boeing jet deliveries, and little progress was made in US-EU trade discussions."
Munnelly said that global investors remained uneasy due to uncertainties in US trade policies and market volatility.
"Economic sentiment has hit a 30-year low, with fund managers' scepticism not yet fully reflected in asset allocations, potentially leading to further declines in US stocks, according to a Bank of America survey.
"Global markets stalled after a two-day rise due to unresolved US trade tensions and new restrictions on Nvidia chip exports to China, with Nvidia trading as much as 6% lower.
"Asian equities and U.S. and European futures fell, influenced by Nvidia's performance."
Markets a sea of red as trade uncertainty persists
Japan's Nikkei 225 led regional losses, falling 1.01% to 33,920.40.
Technology stocks were hit particularly hard, with Advantest dropping 6.55%, SUMCO Corporation down 5.95%, and Toray Industries shedding 4.39%.
The broader Topix index also declined, slipping 0.61% to 2,498.03.
In China, market performance was mixed - the Shanghai Composite edged up 0.26% to 3,276.00, supported by strong gains in small-cap names such as Arcplus Group, Baotou Huazi Industry, and CTS International Logistics, all of which surged over 10%.
However, the Shenzhen Component lost 0.85% to finish at 9,774.73, reflecting uneven sentiment across Chinese exchanges.
Hong Kong's Hang Seng Index recorded a sharp drop of 1.91%, closing at 21,056.98.
Major tech and solar names led the decline, with Meituan tumbling 8.11%, Xinyi Solar down 6.62%, and JD.com falling 5.53%, amid ongoing uncertainty over Chinese regulatory and trade policy developments.
South Korea's Kospi 100 slid 1.48% to 2,430.43, pressured by steep losses in key industrial and tech stocks.
EcoPro Materials, Posco ICT, and SKC all fell by nearly 5% or more.
Australia's S&P/ASX 200 was relatively flat, easing just 0.04% to 7,758.90.
Losses in mining and financials were pronounced, with Perpetual dropping 9.08%, Mineral Resources down 8.99%, and Whitehaven Coal off 7.37%, as commodity-related equities faced profit-taking.
New Zealand bucked the regional trend, with the S&P/NZX 50 gaining 0.47% to 12,067.92.
Gains were led by Heartland Group, which rose 7.14%, while Infratil and Vista Group International added 3.9% and 3.87%, respectively.
In currency markets, the dollar was last down 0.33% on the yen, trading at JPY 142.74, as it weakened 0.42% against the Aussie to AUD 1.5695, and retreated 0.24% from the Kiwi, changing hands at NZD 1.6913.
Oil prices were in the green, with Brent crude futures last up 0.97% on ICE at $65.30 per barrel, and the NYMEX quote for West Texas Intermediate rising 0.98% to $61.93.
China appoints new trade official as GDP grows more than expected
In geopolitical developments, China appointed Li Chenggang as vice minister of commerce and chief representative for international trade negotiations, replacing Wang Shouwen in a move signalling a potential shift in Beijing's trade strategy.
The reshuffle came as US-China tensions escalated, with no signs of resumed talks and tariffs continuing to dominate the bilateral trade agenda.
Li's recent participation in a high-profile symposium with top entrepreneurs underscored his growing influence in shaping policy, especially amid president Xi Jinping's renewed public support for the private sector.
The appointment coincided with stronger-than-expected economic data from China, with the economy growing 5.4% year-on-year in the first quarter, exceeding Reuters' forecast of 5.1% and extending the recovery that began in late 2024.
Those upbeat figures were underpinned by solid domestic demand, with retail sales in March rising 5.9% - well above expectations.
Industrial output also surprised to the upside, growing 7.7% compared to analysts' median estimate of 5.8%.
Despite the strong start, some investment banks had revised down their full-year growth forecasts, citing the risk of deepening US tariff measures.
Meanwhile, Japan was positioning itself for renewed trade discussions with the United States.
Senior economic advisor Takeshi Niinami told CNBC that the country holds "many cards" in the negotiations, ahead of a three-day visit to Washington by lead negotiator Ryosei Akazawa.
Talks with US Treasury secretary Scott Bessent and trade representative Jamieson Greer were set to focus on tariffs and bilateral investment.
Niinami, who also heads brewing and distilling giant Suntory Holdings, noted Japan's status as the largest foreign investor in the US and its role as the top holder of US Treasuries as leverage in the talks.
Reporting by Josh White for Sharecast.com.
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