Asian stock markets are trading mixed on Wednesday, following broadly negative cues from Wall Street overnight.
Traders remain cautious ahead of key interest rate decision by the US Federal Reserve later in the day.
Concerns over the economic outlook and the impact of US President Donald Trump’s trade policies continue to weigh on sentiment.
Asian markets had closed mostly higher on Tuesday.
While the Fed is widely expected to keep interest rates unchanged, investors will closely monitor the accompanying statement and officials’ projections for further insights into the future rate path.
Japanese stocks extend gains
Despite weak leads from Wall Street, the Japanese stock market is trading higher on Wednesday, extending gains for a fourth consecutive session.
The Nikkei 225 has climbed past the 38,000 mark, buoyed by strong performances in exporters, automakers, and financial stocks, though gains in the technology sector have been relatively muted.
The benchmark Nikkei 225 Index closed the morning session at 38,107.27, up 261.85 points, or 0.69%, after touching an intraday high of 38,128.58.
Among key movers, SoftBank Group is down almost 1%, while Fast Retailing, the operator of Uniqlo, is gaining nearly 1%.
In the automotive sector, Honda is edging up 0.3%, and Toyota is advancing close to 3%.
The BOJ decided to keep its key policy rate unchanged at 0.5% in a unanimous vote, aligning with market expectations.
Policymakers remain cautious as they evaluate the potential effects of Trump’s trade policies on Japan’s export-driven economy.
While the BOJ acknowledged that the economy is recovering moderately, officials pointed to signs of weakness in certain areas.
Hong Kong, China stocks wobbly
Hong Kong stocks swung between gains and losses on Wednesday, as investors adopted a wait-and-see approach ahead of Tencent Holdings’ earnings report and the Federal Reserve’s policy decision.
The Hang Seng Index was up 0.11% at 24,767.10, hovering near a three-year high.
The Hang Seng Tech Index, however, dropped 1%.
China’s CSI 300 Index and the Shanghai Composite Index remained little changed.
Tencent edged down 0.1%, while Alibaba Group Holding declined 1.88% to HK$140.70, and search engine giant Baidu fell 4.1% to HK$99.15.
Other Asian markets
The Australian stock market is paring early losses in mid-market trading on Wednesday, snapping a three-session winning streak.
The benchmark S&P/ASX 200 remains well below the 7,900 level after tracking the negative cues from Wall Street overnight, with a mixed performance across most sectors.
The S&P/ASX 200 Index is down 14.70 points, or 0.19%, at 7,845.70, after falling to a low of 7,808.80 earlier.
Seoul shares opened higher Wednesday, defying losses on Wall Street, as gains in tech and bio stocks lifted sentiment.
The Kospi climbed 20.50 points, or 0.78%, to 2,632.84 in the first 15 minutes of trading. Samsung Electronics surged 1.91%, while SK Hynix edged down 0.25%.
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