Asia markets mixed as trade concerns linger, Hong Kong hits 4-month high on Nvidia optimism; U.S. futures dip

Asian stocks trade mixed on Wednesday, followed by a weak lead from Wall Street overnight, as hotter-than-expected June inflation data reignited concerns about prolonged high interest rates and potential import levies Meanwhile, trade concerns lingered after Trump announced a 19% tariff on Indonesian goods, while warning of over 10% tariffs on smaller nations, including nations in Africa and the Caribbean, as the Associated Press reported. Gold prices edged up to around $3,330 per ounce on Wednesday, following a two-day decline, as investors assessed a pick-up in US inflation and ongoing trade developments. Japan ( NKY:IND ) rose 0.45% to around 39,716 while broader Topix Index fell 0.4% to 2,815 on Wednesday, with Japanese shares showing mixed performance. The Japanese yen weakened toward 149 per dollar on Wednesday, its lowest level since early April. On the domestic front, sentiment among Japanese manufacturers improved slightly in July, supported by a rebound in the semiconductor sector. Markets are now turning attention to upcoming trade and inflation data from Japan, which may offer further insight into the local fallout from tariff threats. China ( SHCOMP ) fell 0.23% to below 3,500 while the Shenzhen Component shed 0.05% to 10,740 on Wednesday, extending losses from the previous session amid trade uncertainties, and the offshore yuan President Donald Trump said the US would be fighting China “in a very friendly fashion,” although there appears to be no progress in trade negotiations. Meanwhile, analysts noted that Nvidia’s resumption of H20 AI chip sales to China could signal a positive tone for trade talks with the U.S. ahead of the August deadline. Optimism also grew around the upcoming July Politburo meeting, with hopes it may deliver fresh measures to sustain growth in H2 of 2025. Hong Kong ( HSI ) rose 0.13% to 24,760 on Wednesday morning, extending gains for the fifth session and notching their highest level in four months. India ( SENSEX ) fell 0.18% to 82,416 in morning trade on Wednesday, snapping the previous session’s gains as traders turned cautious amid ongoing US–India trade negotiations. However, the decline was partially offset by positive trade data, as India’s trade deficit narrowed in June 2025 for the first time in three months. Australia ( AS51 ) fell 0.83% to around 8,545 on Wednesday, retreating from a record level finish in the prior session. The Australian dollar strengthened to around $0.653 on Wednesday, snapping a three-day losing streak, as investors turned their attention to Thursday’s labor market data. In the U.S., on Tuesday, all three major indexes ended mixed as investors digested hotter June inflation data, a fresh batch of big bank earnings, and news that Nvidia may resume chip sales to China. U.S. stock futures edged lower on Wednesday as investors turned cautious ahead of a fresh round of corporate earnings and the latest producer price index data: Dow -0.22% ; S&P 500 -0.19% ; Nasdaq -0.19% . Major banks including Bank of America, Goldman Sachs, and Morgan Stanley are set to report earnings before the opening bell, alongside healthcare giant Johnson & Johnson. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: China’s GDP growth slows to 5.2% in Q2, slightly beats forecasts China’s June industrial output rises by 6.8%, but retail sales & investment disappoints China’s trade jumps: Exports beat, imports miss on domestic weakness Japan’s May industrial output revised down to 0.1% fall Japan PPI growth hits 10-month low to 2.9% y/y in June

Source: Seeking Alpha