Asia stock markets mostly rise on Tuesday following a downbeat session on Wall Street overnight, amid lingering tariff concerns, also news of upcoming US-China trade talks in Switzerland eased investor anxiety. Sentiment across Asia was further buoyed by the People’s Bank of China announced plans to cut key lending rates and reduce banks' reserve requirements to stimulate growth. Indian stocks squarely in focus after a military escalation with neighbor Pakistan earlier in the day. Traders remained cautious ahead of the Federal Reserve's interest rate decision, while also monitoring the U.S. economic outlook. Japan ( NKY:IND ) rose 0.05% inched higher on Wednesday, with Japanese shares hovering at one-month highs. The Japanese yen weakened past 143 per dollar on Wednesday, snapping a three-day rally. Meanwhile, investors continued to monitor the progress of US-Japan trade talks, with Tokyo aiming to finalize a bilateral agreement by June. On the data front, Japan’s April services PMI was revised higher, reflecting the strongest rise in new orders in nearly a year. The au Jibun Bank Japan Services PMI was revised higher to 52.4 in April 2025 from 52.2 in the preliminary estimate, up from a neutral 50.0 in March China ( SHCOMP ) rose 0.62% to around 3,340 while the Shenzhen Component surged 0.9% to 10,170 on Wednesday, extending gains from the previous session, the offshore yuan fell to around 7.21 per dollar, extending its decline from the previous session after China announced plans for monetary easing measures to support economic growth. Sentiment was boosted by the PBoC’s announcement of a 50bps cut to the RRR, set to inject around CNY 1 trillion into the banking system as Beijing moves to bolster economic growth amid trade tensions with the U.S. The central bank also said it would lower the 7-day reverse repo rate by 10bps to 1.40%, effective Thursday. Adding to the optimism was news that US Treasury Secretary Bessent and Trade Representative Greer will meet with China’s top officials in Switzerland this week, signaling a potential thaw in tariff talks. Hong Kong ( HSI ) rose 0.45% to 22,932 on Wednesday morning, marking the fifth session of gains and holding at their highest in a month. The S&P Global Hong Kong SAR PMI held steady at 48.3 in April 2025, unchanged from March, signaling continued business contraction for the third consecutive month. India ( SENSEX ) fell 0.19% to 80,399 in morning trade on Wednesday, with the Nifty 50 declining below 24,350. This extended the losses from the previous session, following Indian strikes on Pakistan and Pakistan Kashmir. Australia ( AS51 ) rose 0.37% to around 8,160 on Wednesday, breaking a two-day decline. The Australian dollar slipped back below $0.65 on Wednesday, retreating from five-month highs. On the domestic front, data showed continued weakness in Australia’s industrial sector in April, with trade and election-related uncertainties weighing heavily on manufacturing, particularly in export-exposed areas. In corporate news, National Australia Bank surged 3.7% after posting better-than-expected first-half cash earnings. In the U.S., on Tuesday, all three major indexes ended lower as investor sentiment soured amid mixed signals on trade and the start of the Federal Reserve’s policy meeting. U.S. stock futures climbed on Wednesday after US-China trade talk optimism: Dow +0.51% ; S&P 500 +0.57% ; Nasdaq +0.65% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: China service growth hits 7-month low as trade disruptions weighs on new business orders Australia private sector expands at 51 in April, services sector expands for 15th straight month Australia inflation gauge eases slightly in April by 0.6% Australia Q1 producer price inflation beats estimates; retail sales rises 0.3% in March BOJ keeps rates unchanged, revises down its growth outlook
