Asia stock markets trade higher on Wednesday, mirroring positive momentum from Wall Street. However, sentiment remained cautiously optimistic amid speculation that Trump and Chinese President Xi Jinping may hold talks this week to ease tensions. The South Korean won climbed toward 1,370 per dollar on Wednesday, nearing eight-month highs amid easing political uncertainty after liberal candidate Lee Jae-myung secured the presidency with 49.4% of the votes. South Korea’s inflation rate eased to 1.9% in May 2025, the lowest level in five months and below market expectations of 2.1%. Gold rose toward $3,370 per ounce on Wednesday, recouping some losses from the previous session, as rising geopolitical and economic risks boosted its safe-haven appeal. On the geopolitical front, Ukraine and Russia continued hostilities despite ongoing peace talks, while an Iranian diplomat indicated Tehran would likely reject a US proposal to resolve the nuclear dispute. Japan ( NKY:IND ) rose 0.82% to around 37,800 while the broader Topix Index gained 0.5% to 2,785 on Wednesday, snapping a three-day losing streak. The Japanese yen held steady around 143.9 per dollar on Wednesday, following a nearly 1% decline in the previous session. Japan's services sector continued to expand in May, with the au Jibun Bank PMI revised to 51.0 (up from 50.8 preliminary). China ( SHCOMP ) rose 0.41% to above 3,370 and the Shenzhen Component climbing 0.9% to 10,150. It marked the second straight day of gains, driven by strength in technology shares and positive momentum from Wall Street. Hong Kong ( HSI ) rose 0.75% to 23,626 around noon on Wednesday, marking the second straight session of advance amid strength mainly from consumer and tech sectors. The S&P Global Hong Kong SAR PMI rose to 49.0 in May 2025 from 48.3 in April, marking the softest contraction in private sector activity in three months. India ( SENSEX ) rose 0.20% The HSBC India Services PMI was revised lower to 58.8 in May 2025 from 61.2 in the preliminary estimates. Australia ( AS51 ) rose 0.78% to above 8,520 on Wednesday, hitting a fresh three-month high as weaker-than-expected Q1 GDP figures fueled expectations of a more dovish RBA stance. The Australian dollar stabilized near $0.647 on Wednesday, following an over 0.5% loss in the previous session. The Australian economy grew by 0.2% q/q in Q1 of 2025, slowing sharply from a 0.6% rise in Q4 and falling short of market expectations of 0.4%, marking the 14th quarter of expansion but the softest pace in three quarters. On an annual basis, the GDP expanded 1.3%, holding steady for the second straight quarter but missing the consensus of 1.5%. The Ai Group Industry Index for Australia's manufacturing sector showed persistent contraction in May, recording -23.5. The Ai Group Australian Industry Index rose by 4.2 points to -12.3 in May 2025, indicating continued, albeit slow, recovery across industrial sectors since late 2024. Separately, the S&P Global Australia Services PMI Business Activity Index continued to expand, posting 50.6 in May, marking a 16th straight month of growth but at the slowest pace in six months. In the U.S., on Tuesday, all three major indexes ended higher, lifted by tech strength, solid labor data, and hopes for progress on trade. Investors are now focused on key labor market data, including the ADP private payrolls report due Wednesday, weekly jobless claims on Thursday, and the closely watched May jobs report on Friday. U.S. stock futures were little changed on Wednesday, after the major averages posted strong gains in the previous session: Dow -0.02% ; S&P 500 -0.03% ; Nasdaq -0.07% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: Australia's Q1 GDP misses estimates amid weak public spending, consumer demand, and exports Australia's manufacturing stalls at -23.5 in May, services sector continues 16-month growth Japan services PMI revised upward to 51.0 in May 2025 China’s manufacturing activity unexpectedly contracted in May amid weak output, new orders, and exports RBA Minutes: Rate cut signals caution, data to drive future policy
