Asian markets delivered a mixed performance as investor concerns resurfaced, tempering the optimism sparked by a Wall Street rally.
The rally had followed signals that President Donald Trump was softening both his stance on the Federal Reserve and his rhetoric on trade tensions.
Japan’s Nikkei 225 edged up 0.6% to 35,075.72 in afternoon trading, while Australia’s S&P/ASX 200 climbed 0.8% to 7,983.00. In contrast, South Korea’s Kospi slipped 0.3% to 2,517.83. Hong Kong’s Hang Seng fell 1.2% to 21,805.29, and the Shanghai Composite dipped 0.1%.
Tan Jing Yi of Mizuho Bank described Trump’s policy shifts as “headline turbulence,” cautioning that the global economy could face longer-term damage. “Sentiments swing from hopes of intense relief to inflicted economic gloom,” he noted.
Meanwhile, Wall Street posted strong gains in a broad global rally on Wednesday. The Dow Jones Industrial Average rose 1.1% to close at 39,606.57, the S&P 500 advanced 1.7% to 5,375.85, and the tech-focused Nasdaq Composite jumped 2.5% to 16,708.05.
In bond markets, US Treasury yields initially declined after Trump stated he had no plans to dismiss the Fed chair and hinted at potential tariff reductions on Chinese goods. However, yields later stabilized by the end of the trading day.
