Trump slaps 30% tariffs on EU, Mexico
Investing.com-- Asian stock markets were mixed on Wednesday, as Hong Kong led losses amid rising geopolitical tensions over possible U.S. involvement in the Israel-Iran conflict, while Japan’s Nikkei advanced to a four-month high on a weaker yen.
Investor attention remained firmly on the upcoming U.S. Federal Reserve interest rate decision due later in the day. In Asia, markets digested Japan’s latest trade data, which highlighted the impact of U.S. tariffs.
Regional markets struggled to take cues from U.S. peers as Wall Street futures moved in a narrow range, reflecting uncertain mood.
Hang Seng drops over 1% amid escalating Israel-Iran conflict
Hong Kong’s Hang Seng led losses, shedding more than 1%, after the sixth day of the Israel‑Iran air war, during which both nations launched new missile attacks.
Risk sentiment worsened following a Wall Street Journal report on Tuesday stating that U.S. President Donald Trump convened senior advisers in the Situation Room to review options, including strikes on Iran.
He also demanded "unconditional surrender" from Tehran. Trump’s warning that U.S. patience was “wearing thin” and his claim that America held “complete and total control over Iranian skies” added to the market unease.
The nervous backdrop intensified concerns from recent U.S. trade moves.
China’s Shanghai Composite index fell 0.5%, and the Shanghai Shenzhen CSI 300 dipped 0.4%.
Australia’s S&P/ASX 200 was largely unchanged, while Singapore’s Straits Times Index declined 0.5%.
India’s Nifty 50 Futures were also unchanged, while Indonesia’s Jakarta Stock Exchange Composite Index inched 0.1% lower.
Japan exports drop as tariffs weigh; Nikkei hits 4-mth high on weaker yen
Bucking the regional trend, South Korea’s KOSPI jumped 0.7%.
Japan’s Nikkei 225 also jumped 0.7% to its highest level since late February, bolstered by a softer yen, which was impacted by a surge in oil prices. The broader TOPIX index rose 0.5%.
Data on Wednesday showed that Japan’s exports fell 1.7% year-on-year in May, marking the first decline after eight consecutive months of growth.
Exports bound for the U.S. plunged 11.1%, underscoring the impact of sweeping U.S. tariffs on vehicles, steel, and industrial goods.
Attention now turns to the Federal Reserve’s rate announcement. No moves are expected, but investors will scrutinize updated forecasts amid signs of cooling U.S. retail sales and mounting recession risks.