Asian stock markets closed mostly lower on Wednesday as investors reacted to a mix of company earnings and geopolitical events. The markets faced mixed corporate earnings from Alphabet, the parent company of Google, and semiconductor giant AMD, both of which presented varied performance outcomes. Additionally, the European Union’s (EU) announcement of new tariffs on electric vehicles (EVs) imported from China stirred tensions, prompting a critical response from Beijing.
Market Influences and Economic Data Awaited
Investors showed caution ahead of anticipated U.S. economic reports, along with growing attention toward the upcoming presidential election in the U.S. The dollar remained stable in Asian trading, while gold hit a new record high, and oil prices regained ground after two days of declines.
China’s Shanghai Composite index dropped by 0.61% to settle at 3,266.24 as investors speculated on the implications of a possible Trump election victory, which could renew pressures on U.S.-China relations. Chinese investors are also waiting for potential announcements from an upcoming meeting of China’s top legislative body, scheduled from November 4–8, which may address pressing issues such as local government debt and challenges in the property market.
Meanwhile, Hong Kong’s Hang Seng index fell by 1.55%, closing at 20,380.64, amid growing concerns over the U.S.-China trade conflict and the EU’s recent decision to impose tariffs on Chinese EVs, which adds new complexity to the already tense trade dynamics.
Japan’s Gains Ahead of BOJ Decision; Tech Stocks Rally
Japanese markets, however, saw gains as investors braced for Thursday’s policy decision by the Bank of Japan (BOJ). The Nikkei 225 index increased by 0.96% to 39,277.39, while the broader Topix index rose by 0.81% to close at 2,703.72. The technology sector performed particularly well, with stocks like SoftBank Group and semiconductor equipment maker Advantest both gaining around 3%.
Mixed Performance in Other Asian Markets
In South Korea, the Kospi index closed down by 0.92% at 2,593.79, weighed down by declining auto and tech stocks. Australia’s markets also ended in the red, following third-quarter inflation data, which reported a 2.8% rise—its lowest in over three years. Persistent core inflation dampened expectations for an imminent rate cut. The S&P/ASX 200 fell by 0.83%, closing at 8,180.40, while the All Ordinaries index dropped 0.78% to 8,439.50. Major retail stock Woolworths slid by 6.1% after issuing a profit warning, which also affected competitor Coles, down by 2.4%. New Zealand’s benchmark S&P/NZX-50 index also edged lower, losing 0.69% to close at 12,694.84.
U.S. Stock Market Update: Mixed Responses Amid Economic Reports
On Tuesday, U.S. stock markets ended with mixed results ahead of major technology earnings releases. Some economic indicators revealed a mixed picture: job openings fell to their lowest in over three years in September, but consumer confidence reached a nine-month high. The S&P 500 rose by 0.2%, and the Nasdaq Composite increased by 0.8% to reach a record closing high. However, the Dow Jones Industrial Average dipped 0.4%, marking its sixth decline in the past seven sessions.
As Asian markets continue to navigate corporate earnings and evolving economic policies, the focus remains on key data releases and political developments. Investors may witness further fluctuations as the U.S. Federal Reserve’s upcoming decisions on interest rates and fiscal policies take shape amidst broader international economic pressures.
Comentários