Asia-Pacific stocks trade were little changed on Wednesday as investor sentiment was clouded as investors digested a series of key economic indicators, chiefly weak factory activity data from Japan and China, and Australian CPI inflation. Sentiment was further dampened by a drop in U.S. futures, as traders turned cautious ahead of key U.S. economic releases later today, including the March PCE price index— the Fed’s preferred inflation gauge— and the first estimate of Q1 GDP. Gold extended its recent decline to below $3,310 per ounce on Wednesday, as easing concerns over the impact of US tariffs reduced demand for safe-haven assets. Japan ( NKY:IND ) rose 0.20% rose on Wednesday as markets reopened following a one-day holiday. The Japanese yen slipped to around 142.4 per US dollar on Wednesday, marking its second consecutive day of losses, as a string of disappointing economic data pressured sentiment. March figures revealed that industrial production fell more than expected, while retail sales growth also underwhelmed, raising concerns about the strength of Japan’s recovery. Investor sentiment was buoyed by comments from US Treasury Secretary Scott Bessent, who said the US held “substantial talks” with Japan regarding a potential trade agreement. Markets are now focused on the Bank of Japan’s upcoming policy decision, where the central bank is widely expected to keep interest rates steady at 0.5%. China ( SHCOMP ) f ell 0.08% mixed on Wednesday, with the Shanghai Composite slipping 0.2% to around 3,280, while the Shenzhen Component rose 0.5% to 9,895, and the offshore yuan weakened to around 7.27 per dollar, as investors reacted to disappointing PMI data from China. Official data showed that the manufacturing PMI contracted more than expected in April 2025 , after reaching a one-year high in March. Similarly, the services PMI edged lower in April from a three-month peak in March, missing expectations. Meanwhile, a private survey revealed that manufacturing PMI declined in April from a four-month high in the preceding month. China’s top legislature on Wednesday enacted the Private Economy Promotion Law, the first of its kind, signaling stronger support for the country’s private sector amid ongoing trade risks with the West. In its latest update, China’s Foreign Ministry released a video on social media urging the international community to resist US economic aggression. Although the video does not directly mention the steep tariffs exchanged by both sides, it serves as a defiant message to the US and a call for global unity. Hong Kong ( HSI ) rose 0.23% to 21,934 in early trade on Wednesday, reversing modest gains from the previous session as investors reacted to China’s April PMI data. India ( SENSEX ) rose 0.13% Australia ( AS51 ) rose 0.34% rose 0.4% to around 8,100 on Wednesday, marking its fifth straight session of gains. The Australian dollar edged higher toward $0.64 on Wednesday, recouping some losses from the previous session, as investors digested the latest inflation data. Australia's h eadline inflation held at an annual pace of 2.4% in the first quarter , topping expectations of 2.3%. Meanwhile, core inflation, the Reserve Bank’s preferred measure of trimmed mean inflation, fell to 2.9% from 3.3% in the previous quarter, returning to the RBA’s 2-3% target band for the first time since late 2021. Australia’s private sector credit rose by 0.5% month-over-month in March 2025, maintaining the same pace as in the previous two months and aligning with market forecasts. Singapore bank loans increased to SGD 846.5 billion in March 2025 from SGD 841.1 billion in February. This marked the largest amount since records began in 1980. In the U.S., on Tuesday, all three major indexes ended higher , buoyed by reports that a major trade deal was nearing completion and corporate earnings. U.S. stock futures slipped on Wednesday as investors awaited crucial economic data and major corporate earnings: Dow -0.23% ; S&P 500 -0.48% ; Nasdaq -0.66% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: China's manufacturing contracts in April despite stimulus measures Australia inflation steady at 2.4% in Q1, service inflation dips China says no need for U.S. farm and energy goods, but is stocking oil - report China ramps up cash injection as it faces tariff headwinds, PBoC chief reaffirms supportive policy
