Asian stocks showed minimal movement on Wednesday as reports surfaced suggesting the economic advisors of U.S. President-elect Donald Trump are considering a gradual, month-by-month implementation of tariffs.
Investors responded to a subdued U.S. producer inflation report and anticipated the release of December's Consumer Price Index data later in the day, seeking insights into the Federal Reserve's potential rate adjustments in the upcoming months.
The dollar's upward momentum stalled, providing a boost to oil and gold prices during Asian trading hours.
In China, the Shanghai Composite Index declined by 0.43% to settle at 3,227.12, as markets braced for the 2024 GDP figures to be published later in the week. Conversely, Hong Kong's Hang Seng Index edged up 0.34% to 19,286.07 after a tumultuous trading session.
Japanese markets were relatively stable, while the U.S. dollar slipped to the lower end of the 157-yen range. This movement came after Bank of Japan Governor Kazuo Ueda indicated that the central bank would deliberate on possible interest rate hikes at its forthcoming monetary policy meeting.
The Nikkei Average saw a slight decline, closing at 38,444.58, marking its fifth consecutive day of losses and reaching its lowest point in over a month. Meanwhile, the broader Topix Index rose by 0.31% to close at 2,690.81.
Nintendo shares surged by 2.5%, fueled by expectations regarding the imminent launch of the highly anticipated Switch 2 console.
In Seoul, the Kospi Index remained largely unchanged, finishing slightly lower at 2,496.81 following the arrest of impeached President Yoon Suk Yeol, linked to his unsuccessful attempt at declaring martial law the previous month.
Australia’s market experienced a slight downturn as anticipation built for the crucial U.S. inflation data release later in the day. The S&P/ASX 200 dropped by 0.22% to 8,213.30, primarily due to a decline in tech stocks. Notably, Wisetech Global and Infomedia each fell by 4-5%. The All Ordinaries Index also dipped by 0.18% to end at 8,456.80.
Across the Tasman Sea, New Zealand's S&P/NZX-50 Index increased by 0.46% to reach 12,943.57.
In the United States, stocks showed volatility before concluding with mixed results overnight. Data indicated that producer prices rose slightly less than anticipated in December, providing temporary solace to investors concerned about inflation and interest rate hikes. The Dow increased by 0.5%, while the S&P 500 gained 0.1%, and the technology-centric Nasdaq Composite decreased by 0.2%.
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