Asia-Pacific markets traded mixed on Wednesday as traders weighed the escalating trade tensions between the U.S. and China. On Tuesday, China imposed tariffs on select U.S. imports and launched an antitrust probe into Google, shortly after Trump announced a 10% tariff on all Chinese goods . Meanwhile, investors continue to monitor shifting global trade dynamics, as the US and its international partners have so far taken a cautious stance on tariffs. Japan ( NKY:IND ) rose 0.06% to around 38,930 while the broader Topix Index added 0.8% to 2,760 on Wednesday, with Japanese shares rising for the second straight session. The Japanese yen strengthened past 154 per dollar on Wednesday, reaching a seven-week-high, as strong wage and services data bolstered expectations of a more hawkish stance from the Bank of Japan . Data showed that real wages in Japan rose for the second consecutive month in December, with nominal wage growth hitting a near three-decade high, driven by a surge in winter bonuses. Japan’s services PMI for January was also revised upward to 53, from an initial reading of 52.7. China ( SHCOMP ) fell 0.58% to around 3,240 on Wednesday as the market reopened following a week-long holiday, and the offshore yuan slipped to around 7.29 per dollar after two consecutive sessions of gains, as traders weighed the escalating trade tensions between the U.S. and China. On Tuesday, the US imposed a 10% tariff on Chinese goods , prompting Beijing to announce retaliatory tariffs on US exports, including oil, gas, coal, cars, and farm equipment, starting February 10. Additionally, data revealed that China’s services sector growth slowed to a four-month low in January . Hong Kong ( HSI ) fell 1.06% to 20,522 in early trade on Wednesday, partially erasing gains from the prior session amid broad-based declines. The S&P Global Hong Kong SAR PMI stood at 51.0 in January 2025, barely changing from 51.1 in December. India ( SENSEX ) fell 0.17% The HSBC India Services PMI was revised lower to 56.5 in January 2025, down from 56.8 in the preliminary estimates and declining from the highest reading in four months in December of 59.3. Australia ( AS51 ) rose 0.51% to close at 8,417 on Wednesday, recovering some losses from earlier in the week. On the economic data front, final figures showed that Australia’s private sector activity continued to rise in January, with services activity growth reaching a five-month high and the manufacturing sector returning to expansion. Investors now await December's trade figures, due on Thursday, to gauge the health of the nation’s export-driven economy. South Korea's inflation rate rose to 2.2% in January 2025, up from 1.9% in December, marking the highest level in six months. In the U.S., on Tuesday, all three major indexes ended higher as investors navigated the latest developments in global trade tensions and assessed fresh corporate earnings. U.S. stock futures declined on Wednesday following a weak earnings report from Alphabet, the parent company of Google: Dow -0.27% ; S&P 500 -0.49% ; Nasdaq -0.60% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: China’s services sector growth slows to four-month low in January Japan’s Jan services PMI revised upward to 53; real wages rises for 2nd consecutive month Trump in 'no hurry' to speak to China's Xi Jinping over escalating trade tensions Tit-for-Tat: China hits back with tariffs on U.S. coal and LNG, unveils Google probe U.S. will delay Canada tariffs as countries work on beefing up border security
