Asian Markets Trade Mixed

Asian stock markets are trading mixed on Wednesday, following the broadly positive cues from Wall Street overnight, amid the rising geopolitical tensions between the US and Venezuela as well as China and Japan on escalating tensions over Taiwan. Traders also remain cautious ahead to the release of several key U.S. economic reports later in the week. Asian markets closed mostly higher on Tuesday.

The highlight of the week may be the monthly jobs report on Friday, which could impact the outlook for interest rates ahead of the US Fed’s next monetary policy meeting later this month.

While the Fed is likely to leave rates unchanged at its January 27-28 meeting, the central bank is widely expected to cut rates by at least another quarter point in the coming months.

Australian shares are trading notably higher on Wednesday, reversing the losses in the previous session, with the benchmark S&P/ASX 200 moving above the 8,700 level, following the broadly positive cues from Wall Street overnight, with gains in gold miners and technology stocks partially offset by weakness in energy and financial stocks.

The benchmark S&P/ASX 200 Index is gaining 35.60 points or 0.41 percent to 8,718.40, after touching a high of 8,734.30 earlier. The broader All Ordinaries Index is up 40.40 points or 0.45 percent to 9,037.30. Australian stocks ended notably lower on Tuesday.

Among major miners, BHP Group and Rio Tinto are gaining almost 1 percent each, while Mineral Resources is losing more than 2 percent and Fortescue is edging down 0.4 percent.

Oil stocks are mostly lower. Santos is declining almost 2 percent, Woodside Energy is down more than 1 percent, Origin Energy is slipping almost 1 percent and Beach energy is losing more than 2 percent.

In the tech space, Afterpay owner Block is gaining almost 2 percent, Xero is adding almost 1 percent and Appen is advancing almost 3 percent, while Zip and WiseTech Global are edging up 0.3 to 0.5 percent each.

Among the big four banks, Westpac and ANZ Banking are losing more than 1 percent each, while National Australia bank and Commonwealth Bank are down almost 1 percent each.

Among gold miners, Evolution Mining is gaining more than 2 percent, Resolute Mining is adding almost 2 percent, Northern Star Resources is edging up 0.4 percent, Newmont is advancing 4.5 percent and Genesis Minerals is up more than 1 percent.

In other news, shares in 4D Medical are soaring more than 14 percent after announcing another major contract win with UC San Diego Health, a pre-eminent health system in the US, to use its CT:VQ technology for clinical use in lung imaging.

Shares in Island Pharmaceuticals are skyrocketing more than 17 percent after the biotechnology company secured patent protection in the US for the use of one of its compounds Galidesivir in the treatment of filoviridae viruses.

Shares in Greatland Resources are surging almost 7 percent after the release of upbeat operational and financial results.

In economic news, Australia’s annual inflation slowed to 3.4 percent in November 2025 from 3.8 percent in October, below market forecasts of 3.7 percent, and remaining above the RBA’s 2 to 3 percent target. It marked the lowest inflation since August.

Meanwhile, the total number of building permits issued in Australia in was up a seasonally adjusted 15.2 percent on month in November, the Australian Bureau of Statistics said on Wednesday – coming in at 18,406. That beat expectations for an increase of 2.0 percent following the 6.1 percent contraction in October. On a yearly basis, building permits jumped 20.2 percent after slipping 2.2 percent in the previous month.

In the currency market, the Aussie dollar is trading at $0.673 on Wednesday.

The Japanese stock market is trading notably lower on Wednesday, reversing some of the gains in the previous two sessions, despite the broadly positive cues from Wall Street overnight. The Nikkei 225 is falling well below the 52,300 level, with weakness across most sectors led by exporters and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 52,257.11, down 260.97 points or 0.50 percent, after hitting a low of 53,112.24 earlier. Japanese stocks ended sharply higher on Tuesday.

Market heavyweight SoftBank Group is edging down 0.4 percent and Uniqlo operator Fast Retailing is losing more than 2 percent. Among automakers, Honda is down 2.5 percent and Toyota is also losing 2.5 percent.

In the tech space, Advantest is losing more than 1 percent, while Screen Holdings is edging up 0.4 percent and Tokyo Electron is advancing almost 3 percent.

In the banking sector, Sumitomo Mitsui Financial is declining more than 1 percent, Mizuho Financial is edging down 0.1 percent and Mitsubishi UFJ Financial is losing almost 1 percent.

Among the major exporters, Mitsubishi Electric and Canon are losing almost 1 percent each, while Panasonic is down almost 2 percent and Sony is slipping more than 3 percent.

Among other major losers, Tokyo Electric Power is tumbling almost 5 percent, while Sapporo Holdings, Inpex and Ryohin Keikaku are losing more than 4 percent each. Aeon is slipping almost 4 percent, while ENEOS Holdings, Suzuki Motor, Hino Motors, Daikin Industries and Nintendo are down more than 3 percent each. Yokohama Rubber, Kajima, Mitsubishi Estate and Idemitsu Kosan are declining almost 3 percent each.

Conversely, Takashimaya is soaring more than 7 percent, Ebara is surging more than 6 percent and Ibiden is jumping more than 4 percent, while Resonac Holdings, Mitsui Kinzoku and Sumitomo Metal Mining are gaining almost 4 percent each. Disco, Renesas Electronics and Hoya are advancing more than 3 percent each. Sumco and Recruit Holdings are adding almost 3 percent each.

In economic news, Japan’s S&P Global Services PMI eased to 51.6 in December 2025, below the preliminary estimate of 52.5 and November’s reading of 53.2. It marked the lowest level since May 2025 and a ninth straight month of increase in services activity.

The services sector in Japan continued to expand in December, albeit at a slower pace, the latest survey from Jibun Bank revealed on Wednesday with a services PMI score of 51.1.
That’s down from 52.0 in November, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

In the currency market, the U.S. dollar is trading in the higher 156 yen-range on Wednesday.

Elsewhere in Asia, South Korea is up 1.1 percent, while New Zealand and Indonesia are up 0.4 and 0.2 percent, respectively. Hong Kong is down 1.0 percent, while Malaysia and Taiwan are down 0.2 and 0.4 percent, respectively. China and Singapore are relatively flat.

On the Wall Street, stocks saw further upside during trading on Tuesday after turning in a strong performance to kick off the first full trading week of the New Year. With the continued upward move, the Dow and the S&P 500 reached new record closing highs.

The major averages ended the day just off their highs of the session. The Dow jumped 484.90 points or 1.0 percent to 49,462.08, the Nasdaq climbed 151.35 points or 0.7 percent to 23,547.17 and the S&P 500 rose 42.77 points or 0.6 percent to 6,944.82.

The major European markets have also moved to the upside on the day. While the U.K.’s FTSE 100 Index jumped by 1.2 percent, the French CAC 40 Index rose by 0.3 percent and the German DAX Index crept up by 0.1 percent.

Crude oil prices tumbled on Tuesday as investors booked profits while analyzing the consequences of Saturday’s swift U.S. military operation in Venezuela on global oil supply. West Texas Intermediate crude for February delivery was down $1.11 or 1.90 percent at $57.21 per barrel.

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