By Asian equity markets faced broad selling pressure Wednesday, snapping gains after a recent rally as global headwinds reemerged. Across major indices, including Nikkei 225, Kospi, and Nifty 50, sentiment turned cautious amid mounting macro risks.
In Japan, the Nikkei 225 declined about 0.5%, dragged by weakness in industrial shares and export components. Korea’s Kospi dropped around 1.1%, impacted by sluggish semiconductor demand. In India, the Nifty 50 slipped despite earlier session strength, signaling increased risk aversion in regional capital flows.
Regional indexes followed suit: the MSCI Asia-Pacific ex-Japan index fell ~0.4%. Australia’s benchmark sank roughly 1.0% after strong inflation prints renewed speculation on hawkish central bank stance.
Investors were rattled by remarks from Fed Chair Jerome Powell about elevated stock valuations and an ambiguous tone on future policy. Combined with soft U.S. PMI data, fears of a growth slowdown resurfaced.
Commodities showed divergent trends: Brent crude gained ~0.4%, while gold edged lower after peaking. Reuters+1 Meanwhile, yields on U.S. Treasuries softened slightly as investors sought bond safety.
Regional outlooks hinge on upcoming inflation reports and central bank commentary across Asia. The resilience of consumer demand and export momentum in China and India will also test how far markets can absorb external pressures before a sharper correction unfolds.