Asian Shares Mixed As China's Factory Activity Contracts

(RTTNews) - Asian stocks ended mixed on Wednesday after a slew of U.S. companies suspended or tweaked their full year guidance and regional factory activity data disappointed.

Traders also awaited key U.S. GDP and inflation data as well as earnings from big tech companies like Apple and Amazon for directional cues as President Donald Trump marked 100 days in office during his second term.

The dollar drifted lower after data showed U.S. job openings fell to 7.19M in March—the lowest since Sept 2024 due to trade uncertainty.

Gold dipped towards $3,300 per ounce while oil headed for its biggest, full-month loss for April on uncertainty over U.S. trade policy and global economic growth.

Chinese shares ended lower on growth worries after a survey showed China's factory activity contracted at the fastest pace in 16 months in April.

The official purchasing managers' index came in at 49.0 in April due to escalating trade war with the U.S.

The Shanghai Composite index dropped 0.23 percent to 3,279.03 while Hong Kong's Hang Seng index edged up by 0.51 percent to 22,119.41.

U.S. Treasury Secretary Scott Bessent on Tuesday said during a press conference at the White House that China could lose 10 million jobs quickly if the U.S. keeps tariffs in place at the current level of 145 percent.

Meanwhile, Reuters said, citing sources that China has waived the 125 percent tariff on ethane imports from the United States imposed earlier this month.

Japanese markets advanced as investors reacted to mixed economic reports and looked ahead to Thursday's BOJ rate decision.

Japan's factory output fell last month, while retail sales rose slightly less than the median market forecast, data showed earlier today.

The Nikkei average climbed 0.57 percent to 36,045.38 and posted its first gain for the year on optimism surrounding a potential trade deal. The broader Topix index closed 0.63 percent higher at 2,667.29.

Sony Group shares soared 7.1 percent on reports that the entertainment and electronics company is mulling spinning of its semiconductor unit, with a decision expected as soon as this year.

Seoul stocks snapped a three-day winning streak, with auto, battery and chip-related stocks leading losses. The Kospi average fell 0.34 percent to 2,556.61.

Shares of Samsung Electronics dropped half a percent. The company has warned over new tariffs and export curbs after posting its highest-ever first-quarter 2025 revenue on the back of strong Galaxy S25 smartphone sales.

Australian markets rose for a fifth day running as data showed core inflation in the country slowed to a three-year low in the first quarter, reinforcing expectations for an RBA rate cut in May.

The benchmark S&P/ASX 200 climbed 0.69 percent to 8,126.20, led by gains in financial and consumer stocks. The broader All Ordinaries index settled 0.64 percent higher at 8,341.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index fell 1.02 percent to 11,903.31, marking its second straight session of losses amid U.S. tariff woes.

U.S. stocks rose overnight as Commerce Secretary Howard Lutnick said the Trump administration had reached its first trade deal.

He declined to name the country involved, adding their prime minister and the parliament will give their approval "shortly."

Bessent also told reporters the U.S. is "very close" to a trade deal with India, has had "substantial talks" with Japan and has "the contours of a deal" with South Korea.

Investors shrugged off downbeat economic reports, with the U.S. trade deficit in goods widening to a record high in March, job openings falling to the lowest since September and consumer confidence sinking to a five-year low, driven by tariffs and recession fears.

The S&P 500 gained 0.6 percent to end higher for the sixth straight session and reach its best closing level in almost a month.

The Dow jumped 0.8 percent and the tech-heavy Nasdaq Composite advanced 0.6 percent.