Asia stock markets trade mostly higher on Wednesday, tracking gains on Wall Street overnight, as easing trade tensions and cooler inflation data lifted investor sentiment. Separately, the Trump administration issued new guidance clarifying that the use of Huawei Technologies’ Ascend AI chips “anywhere in the world” violates US export controls. Officials also warned of potential consequences for allowing US-developed AI chips to be used in training Chinese AI models. Markets are now focused on President Trump’s upcoming visit to the Middle East, timed with peak fuel demand, with oil price stability likely a key objective. Gold fell to around $3,240 per ounce on Wednesday, giving back gains from the previous session. Japan ( NKY:IND ) fell 0.35% to around 38,150 while the broader Topix Index lost 0.4% to 2,761 on Wednesday, paring gains from earlier this week as investors locked in profits following a strong rally. The Japanese yen strengthened toward 147 per dollar on Wednesday, marking its second consecutive session of gains. On the bilateral front, Japanese Prime Minister Shigeru Ishiba stated that Japan would not accept any initial trade deal with the US that omits provisions on automobiles, calling on Washington to scrap its 25% tariff on Japanese cars. Domestically, investors assessed data showing producer prices in Japan rose 4% year-on-year in April, down from 4.2% in March, marking the softest pace since December. The Bank of Japan has maintained a cautious policy stance, citing ongoing uncertainty over both economic conditions and inflation trends. China ( SHCOMP ) rose 0.43% to around 3,370 while the Shenzhen Component lost 0.4% to 10,250 on Wednesday, with mainland stocks struggling to build on recent gains as investors cautiously navigated evolving Sino-US trade relations, the offshore yuan weakened to around 7.21 per dollar on Wednesday, snapping a three-session winning streak, as investors adopted a cautious stance while waiting for further developments in US-China trade relations. Hong Kong ( HSI ) rose 1.58% to 23,368 in early trade on Wednesday, rebounding from a sharp loss in the prior session as most sectors gained ahead of key earnings from major Chinese tech firms. The Hang Seng Tech Index led the advance, jumping 1.3%, after a rally in U.S. chipmakers overnight following news that Nvidia and AMD will supply semiconductors to Saudi firm Humain for a data center project. India ( SENSEX ) rose 0.64% to 81,639 in early trade on Wednesday, rebounding after posting the steepest decline in over a month in the previous session. India’s inflation eased to 3.16% in April, the lowest since July 2019, raising hopes of potential interest rate cuts. Australia ( AS51 ) rose 0.02% to around 8,260 on Wednesday, giving back some gains from earlier in the week as the recent market rally showed signs of fatigue and investors digested fresh corporate developments. The Australian dollar climbed above $0.648 on Wednesday, marking its second consecutive session of gains. On the domestic front, data showed Australian wage growth exceeded expectations in the first quarter, while home loan approvals declined, offering a mixed picture of the economic backdrop. The value of new owner-occupier loan commitments for dwellings in Australia declined by 2.5% quarter-on-quarter to AUD 53.2 billion in Q1 of 2025 Looking ahead, the Reserve Bank of Australia is widely expected to cut interest rates by 25 basis points at its meeting next week, as it continues to support growth amid global uncertainties. In the U.S., on Tuesday, all three major indexes ended higher , extending its rally on Tuesday as easing US-China trade tensions and softer inflation data boosted investor confidence. U.S. stock futures were little changed on Wednesday after technology stocks powered another rally in the previous session: Dow +0.10% ; S&P 500 +0.07% ; Nasdaq +0.17% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: Trump set to unveil trade deal with UK on Thursday - report China service growth hits 7-month low as trade disruptions weighs on new business orders Australia private sector expands at 51 in April, services sector expands for 15th straight month Australia inflation gauge eases slightly in April by 0.6% Australia Q1 producer price inflation beats estimates; retail sales rises 0.3% in March
