Asian Shares Mixed Amid Middle East Tensions

(RTTNews) - Asian stocks ended mixed on Wednesday as Middle East tensions escalated, and investors awaited the Federal Reserve's projections for economic growth and inflation against the backdrop of U.S. President Donald Trump's aggressive stance on tariffs.

Israeli airstrikes on Gaza killed over 400, reigniting a conflict that has claimed 48500 Palestinian lives.

Adding to the unease, Russian President Vladimir Putin rejected an immediate and full ceasefire in Ukraine, agreeing only to halt attacks on energy infrastructure for 30 days.

The dollar index was firm as tensions flared over Gaza and Trump's tariffs. Gold held near record highs while oil extended losses after the American Petroleum Institute reported a build in U.S. crude stockpiles.

The euro held close to a five-month high reached in the previous session after Germany's parliament approved plans for a significant increase in defense and infrastructure spending.

China's Shanghai Composite index finished marginally lower at 3,426.43 amid reports that banks are slashing rates on consumer loans to record rates, following efforts by policymakers to stabilize growth and counter U.S. tariffs.

Hong Kong's Hang Seng index ended up 0.12 percent at 24,771.14 after a volatile session. Xpeng shares slumped 5.8 percent after the electric vehicle maker's fourth-quarter results fell short of what analysts had expected. Tech firm Xiaomi rose 1 percent after raising its EV sales target.

Japanese markets ended slightly lower and the yen eased against the dollar as the Bank of Japan left rates steady and signaled concern about the impact of trade tensions on the global economy.

Investors also digested mixed economic readings, with Japan's exports rising for a fifth straight month in February, while machinery orders dropped more than expected in January.

The Nikkei average dropped 0.25 percent to 37,751.88 while the broader Topix index settled 0.45 percent higher at 2,795.96.

Seoul stocks rose notably, driven by big-cap tech and steel shares. The Kospi average rose 0.62 percent to 2,628.62, extending its winning streak to a third straight session on expectations of a recovery in the semiconductor sector.

Australian markets ended lower to snap a three-day winning streak. The benchmark S&P/ASX 200 dipped 0.41 percent to 7,828.30, with utilities and real estate stocks leading losses. The broader All Ordinaries index closed 0.43 percent lower at 8,055.30.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index slid 0.26 percent to 12,045.93.

U.S. stocks pulled back overnight after a two-day rally. As recession fears rise, encouraging industrial production and housing data helped cap overall losses to some extent.

The tech-heavy Nasdaq Composite fell 1.7 percent, the S&P 500 shed 1.1 percent and the Dow eased 0.6 percent amid concerns over President Trump's on-again-off-again tariff policy.