(Sharecast News) - Asia-Pacific markets finished in a mixed state on Wednesday, as investors awaited a fresh round of US tariffs expected to be announced by president Donald Trump, adding to global trade uncertainty.
Patrick Munnelly, market strategy partner at TickMill, said stocks in the region edged lower as investors recalibrated their risk exposure ahead of president Trump's anticipated tariff announcement.
"Regional indices declined in Japan and South Korea, while Hong Kong experienced minor fluctuations, hovering near the flatline.
"Treasury yields climbed after a recent dip, reflecting market speculation on potential Federal Reserve easing.
"Trump has already enacted tariffs on aluminium, steel, and automobiles while raising duties on all imports from China."
Munnelly said the action had unsettled markets, as worries grew that a full-scale trade conflict could lead to a significant downturn in the global economy.
"During these unpredictable times, gold prices have surged, reaching a record high of over $3,000 per ounce.
"The yellow metal has risen 19% this year, following a 27% increase in 2024, marking its best annual performance in over a decade."
Markets mixed as investors await clarity on Trump tariffs
Japan's Nikkei 225 rose 0.28% to close at 35,725.87, led by strong gains in IHI Corporation, Recruit Holdings, and Fast Retailing, which climbed 5.74%, 3.89%, and 3.74% respectively.
However, the broader Topix index slipped 0.43% to 2,650.29, reflecting weakness outside the heavyweight stocks.
Chinese markets edged higher, with the Shanghai Composite up 0.05% to 3,350.13 and the Shenzhen Component advancing 0.09% to 10,513.12.
Gains were concentrated in small-cap names, with Wuhan Xianglong Power Industry, Kuaijishan Shaoxing Wine, and Nanjing OLO Home Furnishing each rising by the daily limit of 10%.
Hong Kong's Hang Seng Index was flat, down just 0.02% to 23,202.53, as declines in tech and consumer names weighed.
Xiaomi dropped 4.19%, China Hongqiao Group fell 4.11%, and Haidilao International lost 2.24%.
South Korea's Kospi 100 lagged the region with a 0.6% decline to 2,534.94.
Industrial and materials stocks led the losses, with Hyundai-Rotem down 6.52% and SKC and Korea Aerospace both falling 5.4%.
In Australia, the S&P/ASX 200 gained 0.12% to close at 7,934.50, lifted by strength in tech and property.
Megaport rose 4.29%, while Charter Hall Group and Goodman Group added over 3% each.
New Zealand's S&P/NZX 50 edged up 0.06% to 12,320.19.
Freightways led the market with a 2.97% gain, followed by Meridian Energy and Fisher & Paykel Healthcare.
In currency markets, the dollar was last 0.01% stronger on the yen, trading at JPY 149.63, while it weakened 0.5% against the Aussie to AUD 1.5849, and retreated 0.75% from the Kiwi, changing hands at NZD 1.7411.
Oil prices were lower, with Brent crude futures last down 0.15% on ICE at $74.38 per barrel, and the NYMEX quote for West Texas Intermediate off 0.11% at $71.12.
Consumer prices rise faster in Korea, BoJ governor warns over US tariffs
In economic news, South Korea's consumer prices rose at a faster pace in March, with headline inflation reaching 2.1% year-on-year, up from 2.0% in February.
The reading also exceeded economists' expectations, which had forecast a steady rate of 2.0%, according to a Reuters poll.
Core inflation, which excludes volatile food and energy prices, increased 1.9% from a year earlier, suggesting underlying price pressures remain modest but persistent.
In Japan, Bank of Japan governor Kazuo Ueda cautioned that impending US trade measures could significantly disrupt global commerce.
Addressing lawmakers in parliament, Ueda highlighted the potential global ramifications of new tariffs planned by the US administration, including reciprocal duties set to take effect 2 April and additional auto tariffs expected on 3 April.
Reporting by Josh White for Sharecast.com.
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