Most Asian stock markets fell on Wednesday, mirroring overnight weakness from Wall Street as investors grew cautious over U.S. trade tariffs and global demand concerns. Despite upbeat economic data from Australia and China, regional sentiment remained muted.
Asian markets tracked the losses on Wall Street, where technology stocks led declines. Pressure grew after a U.S. appeals court ruled against former President Trump’s tariffs, raising concerns over Washington’s recent trade agreements.
Futures linked to the S&P 500 rose slightly in Asia trading, supported by Alphabet’s relief rally following a softer-than-expected antitrust ruling. However, the bounce was not enough to offset broader risk aversion in Asia.
Australia’s ASX 200 dropped nearly 1%, the worst performer in the region. The sell-off came after second-quarter GDP data revealed stronger-than-expected growth, fueled by robust consumer spending and government support.
While the upbeat data reflects economic strength, it also dented expectations for further monetary easing by the Reserve Bank of Australia (RBA). Analysts at Capital Economics noted that “sticky inflation and firm domestic demand make aggressive policy easing less likely.”
Chinese equities extended losses as investors booked profits after a strong August rally. The CSI 300 slipped 0.7% and the Shanghai Composite fell 1%, even as private PMI data showed service sector activity expanding at its fastest pace in five months.
Technology and chip-related stocks, key drivers of last month’s rally, bore the brunt of selling pressure. Cambricon Technologies fell over 4% on the day, reflecting caution in high-growth sectors.
With investors shifting focus to upcoming U.S. labor market releases and ongoing trade tensions, Asian equities remain vulnerable. While economic resilience in China and Australia offered some positive signals, geopolitical and tariff risks continue to dictate market sentiment.
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