Asia-Pacific markets trade mixed on Wednesday, following Wall Street gains overnight after US President Donald Trump's less aggressive stance on tariffs. Investor sentiment soured after U.S. President Donald Trump said that his team was discussing a 10% tariff on China as early as Feb. 1, the same day that he previously said Mexico and Canada would face levies of around 25%. Market sentiment was further dampened by caution ahead of China’s Lunar New Year holiday, as well as upcoming interest rate decisions from the Bank of Japan and the US Federal Reserve. Japan ( NKY:IND ) rose 1.78% to surpass 39,500, while the broader Topix Index gained 0.7% to 2,732 on Wednesday, reaching their highest levels in nearly two weeks. The Japanese yen steadied around 155.6 per dollar on Wednesday, pausing its recent rally which was fueled by expectations that the Bank of Japan would raise interest rates this week following hawkish remarks from central bank officials. China ( SHCOMP ) fell 0.98% to around 3,210 while the Shenzhen Component tumbled 1.1% to 10,185 on Wednesday, after US President Donald Trump said his team was discussing a 10% tariff on goods imported from China that could take effect as early as Feb. 1. The offshore yuan depreciated past 7.28 per dollar, extending its losses from the previous session. Hong Kong ( HSI ) fell 1.55% to 19,787 in early trade on Wednesday, ending gains in the prior six sessions. India ( SENSEX ) rose 0.40% to 76,176 in morning trade on Wednesday, as traders took profits after hitting a more than seven-month low in the prior session. Australia ( AS51 ) rose 0.33% to close at 8,430 on Wednesday, hitting its highest level in nearly seven weeks during the session. The Westpac-Melbourne Institute Leading Economic Index in Australia remained unchanged month-over-month in December 2024, following a 0.1% rise in the previous month. In the U.S., on Tuesday, all three major indexes ended higher with the S&P 500 adding 0.9%, the Nasdaq gaining 0.6%, and the Dow jumping 538 points, supported by relief over President Trump’s unexpectedly softer trade measures after his first day in office. U.S. stock futures rose on Wednesday following a strong market rally in the previous session: Dow +0.02% ; S&P 500 +0.29% ; Nasdaq +0.68% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: Trump says he’s thinking of imposing 10% tariffs on China in February With Chinese stocks under scrutiny as Trump takes office, here are SA's top 10 People's Bank of China keeps one and five-year loan prime rates unchanged in Jan, as expected China shows strongest GDP growth in over a year Bank of Japan to discuss interest rate hike next week - deputy chief
