Asian Shares Mixed On US Tariff Worries

(RTTNews) - Asian stocks ended Wednesday's session on a muted note as bond yields jumped after Federal Reserve Chair Jerome Powell's comments on interest rates and economic stability.

Traders also waited for an announcement on higher reciprocal tariffs that U.S. President Donald Trump might unleash.

The U.S. dollar dipped ahead of U.S. consumer inflation reading due later in the day. Gold dipped below $2,900 per ounce after hitting a new record high in the previous session amid heightened global uncertainty and potential trade war fears.

Crude oil futures eased in Asian trade after the American Petroleum Institute reported a huge jump in U.S. crude inventories.

China's Shanghai Composite index jumped 0.85 percent to 3,346.39 after BYD said it would integrate self-driving features across 21 vehicles, using DeepSeek AI in some. BYD shares rallied 4.6 percent.

Hong Kong's Hang Seng index surged 2.64 percent to 21,857.92. Alibaba Group Holding soared 8.5 percent after reports that Apple is partnering with Alibaba to introduce artificial intelligence (AI) features for iPhone users in China.

Japanese markets eked out modest gains as the yen remained on track for its longest losing streak in more than a month amid heightened concerns Japan may be included in Trump's tariff plan.

Traders also digested comments from Bank of Japan Governor Kazuo Ueda that the central bank will continue to conduct its monetary policy with the aim of achieving its 2 percent inflation target sustainably and stably.

The Nikkei average rose 0.42 percent to 38,963.70 while the broader Topix index finished marginally higher at 2,733.33. Technology investor SoftBank Group surged 3.8 percent before announcing it swung to a $2.4bn loss in its fiscal third quarter.

Seoul stocks hit a three-month high, with the Kospi average rising 0.37 percent to 2,548.39 - its highest since November 8, 2024 on speculation that U.S. tariffs under President Trump might largely overlook South Korea.

Shipbuilders Hyundai Heavy Industries and Hanwha Ocean both soared more than 15 percent, fueled by talks of a U.S. bill for naval ship production in allied countries.

Australian markets rose notably to a record close, led by financials. The benchmark S&P/ASX 200 rose 0.60 percent to 8,535.30 while the broader All Ordinaries index settled 0.55 percent higher at 8,799.60.

Commonwealth Bank of Australia gained 2.5 percent after delivering strong half-year performance. Westpac rose 1.1 percent, ANZ added 0.7 percent and NAB surged 1.7 percent.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index ended marginally lower at 12,913.95.

U.S. stocks fluctuated before eventually ending narrowly mixed overnight as bond yields climbed on Powell's remarks signaling a patient path for rate cuts.

In his first appearance before Congress since the inauguration, Fed Chair Powell indicated the central bank was in no rush to adjust its policy stance and described the economy as "strong" and the labor market as "solid."

He avoided any mention of the economic consequences of President Trump's tariff or trade policies.

The tech-heavy Nasdaq Composite slid 0.4 percent, while the S&P 500 finished marginally higher and the Dow rose 0.3 percent.