Asia-Pacific stocks mostly in red on Wednesday, taking cues from a negative lead on Wall Street, as earnings jitters and tariff concerns dampened investors’ mood, while gold hit a record and the dollar stayed under pressure. In the latest trade policy twist, President Donald Trump ordered a probe into possible tariffs on all U.S. critical mineral imports, many of which are sourced from China. The move added to investor anxiety, further weighing on the dollar. Traders grew cautious ahead of both Powell’s comments and ongoing trade developments with key U.S. partners. Gold climbed toward $2,630 per ounce on Wednesday, setting a new record, as ongoing uncertainty around US trade policy continued to support safe-haven demand, alongside a broadly weaker dollar. Japan ( NKY:IND ) fell 0.61% to below 34,200 on Wednesday, halting a two-day winning streak. The Japanese yen strengthened past143 per dollar on Wednesday, recovering from the previous session’s losses, as broad-based weakness in the U.S. dollar persisted. The Bank of Japan may take policy action if U.S. tariffs harm its economy, Governor Kazuo Ueda said in an interview with the Sankei newspaper. The central bank is considering a response as risks from Trump's trade measures are closer to the expected bad scenario. Ueda emphasizes the need to assess the economic impact of tariffs without preconceptions. Meanwhile, attention is shifting to upcoming trade talks between Japan and the U.S., with Tokyo pushing for the full removal of Trump's tariffs. On the domestic front, traders digested data showing an eight-month high in Japanese manufacturing sentiment for April that jumped to +9 from -1 in March. However, the outlook remains cautious as fears around U.S. trade policy persist. Japan’s core machinery orders rebounded sharply in February 2025, rising 4.3% month-on-month to ¥894.7 billion, well above market expectations for a 0.8% increase. China ( SHCOMP ) fell 0.76% to around 3,250 while the Shenzhen Component dropped 1% to 9,755 on Wednesday, halting a six-day winning streak as trade war concerns overshadowed upbeat economic data, and the offshore yuan steadied around 7.32 per dollar on Wednesday, following the release of stronger-than-expected economic data from China. The pullback came after President Donald Trump ordered a probe into potential new tariffs on critical mineral imports—many of which are sourced from China—raising fears of further deterioration in U.S.-China relations. On the data front, China’s economy posted better-than-expected growth in Q1 , supported by robust policy stimulus. Key indicators including retail sales, industrial production, and fixed asset investment all exceeded forecasts in March . China’s surveyed unemployment rate fell to 5.2% in March 2025, easing from a two-year high of 5.4% in the previous month and coming in below market expectations of 5.3%. China's industrial capacity utilization rate increased to 74.1 percent in Q1 of 2025 from 73.6 percent in the same period a year earlier. China’s new home prices in 70 cities fell by 4.5% year-on-year in March 2025, easing slightly from a 4.8% decline in February. Hong Kong ( HSI ) fell 2.06% to 20,934 around midday Wednesday, snapping a six-session winning streak as investors took profits after the Hang Seng hit a two-month high earlier this week. Australia ( AS51 ) rose 0.26% to 7,760 on Wednesday. The Australian dollar held above $0.63 on Wednesday, eyeing a sixth consecutive session of gains. The Westpac-Melbourne Institute Leading Economic Index for Australia edged down 0.1% month-over-month in March 2025, reversing the 0.1% increases in the previous two months. Investors turned their focus to Thursday’s employment data, which could offer fresh insights into the labor market and influence the Reserve Bank of Australia’s policy direction. In the U.S., on Tuesday, all three major indexes ended in red as investors weighed a new round of corporate earnings and ongoing concerns over tariffs and trade policy uncertainty. U.S. stock futures fell early Wednesday, pressured by a sharp drop in Nvidia shares during after-hours trading: Dow -0.32% ; S&P 500 -0.90% ; Nasdaq -1.44% . Investors are also bracing for a wave of corporate earnings set to be released later in the day, including reports from Abbott, U.S. Bancorp, and Travelers. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: China's March retail sales rises more than expected to 5.9%; industrial output rises 7.7%; unemployment rate falls 5.2% China's Q1 GDP expands 1.20% Q/Q RBA minutes reveal cautious approach to future interest rate moves China's March trade surplus above estimates, exports surge while imports fall Trump intensifies tariff pressure: "No one off the hook," denies tariff rollbacks
