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Asian stocks rise as Wall Street pauses

Asian markets traded mostly higher on Wednesday, buoyed by gains in Korea, Australia, and China, despite a dip in Japan’s Nikkei 225 due to slowing export growth. Wall Street's six-day rally came to a halt on Tuesday, with US stocks posting moderate losses. European markets, however, saw gains as falling German producer prices bolstered hopes for European Central Bank (ECB) rate cuts.

  • Date
  • Author Shane Strowmatt, LGT
  • Reading time 5 minutes

Market numbers
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Asia-Pacific markets traded mostly higher on Wednesday after Wall Street's six-day rally paused. Japan’s Nikkei 225 was the exception, trading 0.3% lower. Japan's export growth decelerated to 2% year-on-year in April, down from 4% in March, as shipments to the US fell 1.8% due to President Trump's tariffs. This marks the first decline in US-bound exports in four months, primarily impacting automobiles, steel, and ships. In Korea, the Kospi surged 1.1%. Australia’s S&P/ASX 200 was up 0.6%. Hong Kong’s Hang Seng Index rose 0.9% and mainland China’s CSI 300 gained 0.7%.

US stocks decline amid rate uncertainty

US stock markets experienced moderate losses on Tuesday, with the Dow Jones Industrial Average falling 0.3% to 42,677.24 points, the S&P 500 declining 0.4% to 5940.46 points, and the Nasdaq 100 dropping 0.4% to 21,367.37 points. Investors are cautious due to uncertainty over potential interest rate cuts by the Federal Reserve (Fed) following recent mixed economic data releases and comments from Fed officials. The US dollar weakened on Wednesday as investors turned to the Japanese yen and Swiss franc amid concerns over US trade policies and fiscal health. Gold prices rose, trading around USD 3300 per ounce, while bitcoin was trading higher around USD 107,600. US Treasury yields increased across the curve, with the 2-year yield at 4% and the 10-year yield at 4.5%.

German producer prices fall

Producer prices of industrial products in Germany decreased by 0.9% in April 2025 compared to April 2024, driven by lower energy costs, according to data released by the Federal Statistical Office on Tuesday. Month-on-month, prices fell by 0.6%. Excluding energy, producer prices rose by 1.5% year-on-year. The drop in producer prices in Europe’s largest economy provides more support for the ECB to cut interest rates. European stock indices rose on Tuesday. The Euro Stoxx 50 climbed 0.5%, Germany’s DAX advanced 0.4% to 24,036.11 points, and France’s CAC 40 gained 0.8% to 7942.42 points. The Swiss Market Index increased by 0.5%.

Canadian inflation slows

Canadian inflation decelerated to 1.7% in April, down from 2.3% in March, driven by a significant 12.7% drop in energy prices, according to a report released by Statistics Canada on Monday. Excluding energy, inflation increased to 2.9%, indicating persistent underlying price pressures. The decline in energy prices was largely due to the removal of the federal consumer carbon price and increased OPEC+ supply. Despite the overall slowdown, food inflation remained high at 3.8%.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Lowe's, Medtronic, and Target. Annual general meetings at Partners Group and Porsche.

Economic data in focus: UK Consumer Price Index (08:00).

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