Asian Shares Mixed As China GDP Data Disappoints

(RTTNews) - Asian stocks rose broadly on Wednesday as a softer-than-expected U.S. inflation print helped reduce concerns of a possible interest-rate hike by the Federal Reserve in the near term.

That said, overall gains were limited after the release of weak China GDP data and amid growing concerns that the United States and Iran may return to an all-out war.

After announcing a reversal of plan to charge a 20 percent toll on cargo passing through the Strait of Hormuz, U.S. President Donald Trump said he would authorize the bombing of Iran's energy infrastructure next week if Iran doesn't come to the table.

The dollar extended losses in Asian trade while gold prices slipped to $4,023 an ounce on concerns over rising oil prices amid escalating Middle East tensions.

Brent crude futures traded up nearly 2 percent above $86 a barrel, extending gains for a third consecutive session on fears of prolonged disruptions to energy supplies.

China's Shanghai Composite index dropped 0.29 percent to 3,955.58 after China's GDP growth came in at 4.3 percent in Q2, the weakest pace since late 2022 and missing market projections.

However, separate industrial output and retail sales released alongside GDP figures showed some signs of improvement in consumer activity in June.

Hong Kong's Hang Seng surged 1.40 percent to 24,681.10, with healthcare and biotech stocks leading the surge.

Japanese markets rose sharply to extend gains for a second consecutive session, driven by short covering in semiconductor-related stocks.

The Nikkei average surged 1.49 percent to 68,751.51 while the broader Topix index ended up 1.22 percent at 4,088.12.

Advantest rallied 5.8 percent and Tokyo Electron advanced 4.4 percent ahead of earnings reports from ASML and TSMC.

Seoul stocks rallied the most in nearly five weeks as semiconductor stocks rebounded from a recent sell-off. The Kospi index jumped 6.24 percent to 7,284.41.

Market bellwether Samsung Electronics climbed 6.3 percent after upbeat analyst views on the outlook for AI memory demand.

Leading AI memory chipmaker SK Hynix soared 8.8 percent and chip equipment maker Hanmi Semiconductor skyrocketed nearly 30 percent.

Australian markets eked out modest gains as a weaker dollar lifted base metals prices and drove a sharp rebound in mining stocks.

The benchmark S&P/ASX 200 rose 0.37 percent to 8,841.10 while the broader All Ordinaries index settled 0.37 percent higher at 9,034.60. BHP Group shares surged 3.2 percent while Rio Tinto added 1.1 percent.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index slipped 0.12 percent to 13,635.07, giving up early gains and extending losses for a third consecutive session.

U.S. stocks rose overnight as softer inflation data and blockbuster bank earnings offset a profit warning from IBM.

Bond yields dipped and the odds of a July rate hike crashed from 40 percent to 20 percent after data showed both headline and core inflation eased in June.

CPI inflation fell to 3.5 percent in June, coming in below estimates for a 3.8 percent jump and down from 4.2 percent in May, dragged down by the biggest decline in gasoline prices since 2022. Core inflation slowed to 2.6 percent from a seven-month high of 2.9 percent in May.

Meanwhile, crude oil prices pulled back from day's highs after President Trump backed away from his threat to charge a 20 percent toll on all cargo going through the Strait of Hormuz.

The President said he would instead chase "trade and investment deals" with Persian Gulf nations after speaking to their leaders.

The tech-heavy Nasdaq Composite surged 0.9 percent, the S&P 500 gained 0.4 percent and the narrower Dow finished marginally higher.