Asian markets mostly advanced on Wednesday, with Hong Kong rebounding from early losses to finish higher. Gains were also recorded in Shanghai, Sydney, Jakarta, and Bangkok, while Manila ended flat. The uptick came as Hong Kong’s stock exchange operator reported record half-year revenue, boosted by a revival in public listings and trading activity at the financial hub.
The positive momentum followed Tuesday’s selloff in major technology stocks, including Nvidia, Palantir, and Oracle, as investors grew cautious about the sustainability of this year’s powerful rally in tech shares. The retreat comes against a backdrop of economic uncertainty, with lingering trade tensions and fresh tariffs imposed by former US president Donald Trump on key American trading partners weighing on sentiment.
Economic data released midweek added further complexity to the outlook. Japan reported its sharpest drop in exports in more than four years, underscoring the strain on Asia’s trade-reliant economies. In Europe, UK statistics authorities announced that inflation accelerated to its highest level since early last year, driven largely by rising food and energy costs. Analysts warned that the unexpected surge would pile additional pressure on households and policymakers.
European trading opened mixed, with London and Paris edging lower while Frankfurt managed modest gains. Investors across regions are now focused on US Federal Reserve Chair Jerome Powell’s highly anticipated address at the Jackson Hole central banking summit in Wyoming on Friday. Markets widely expect the Fed to cut interest rates at its September policy meeting, but Powell’s tone is seen as critical. Analysts cautioned that a dovish stance could stoke inflation fears, while a hawkish message might dampen equity markets already trading at elevated levels.
At around 0715 GMT, Tokyo’s Nikkei 225 closed 1.5 percent lower at 42,888.55, while Hong Kong’s Hang Seng rose 0.3 percent to 25,200.07. Shanghai’s Composite Index added 1.0 percent to 3,766.21. In Europe, London’s FTSE 100 slipped 0.1 percent to 9,183.54. On the currency front, the euro eased to $1.1640, while the pound strengthened slightly to $1.3492. The dollar weakened against the yen to 147.39. In commodities, US benchmark West Texas Intermediate rose 0.7 percent to $62.80 a barrel, while Brent crude climbed 0.8 percent to $66.29.
