Bombay Gate Gateway of India, Mumbai
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Asia-Pacific markets traded mixed on Wednesday, breaking ranks with Wall Street, as investors assessed China industrial profits data.
China’s industrial profits slipped 1.5% from a year earlier in July, marking a notable recovery following months of steeper declines.
Separately, steep U.S. tariffs on India are set to take effect. Additional tariffs of 25% are set to take effect Wednesday, pushing overall duties on exports to the U.S. to 50%. Indian markets are closed for a holiday.
Japan’s Nikkei 225 was marginally higher. Photographic equipment manufacturer Nikon Corporation led gains in the index, surging over 20% as of 10.04 p.m. ET Tuesday, as EssilorLuxottica, the maker of Ray-Ban sunglasses is looking at a potential deal to raise its stake in Nikon, according to Bloomberg.
The broader Topix index was down 0.3%.
South Korea’s Kospi declined 0.17%, falling for a second straight session. The small-cap Kosdaq lost 0.16%.
Australia’s S&P/ASX 200 added 0.15%.
Hong Kong’s Hang Seng index was 0.27% higher, while the mainland CSI 300 rose 0.4%. The index snapped its four-day winning streak on Wednesday. The CSI 300 has been surging recently, with some economists and banks such as Nomura pointing to “irrational exuberance.”
“Sentiment is becoming excessively optimistic,” said Hao Hong, managing partner and CIO of Lotus Asset Management. However, he noted that it is still “too early” to call the market a bubble.
“Given the improving liquidity conditions and a dovish Fed, any correction will tend to be shallow and brief,” he added.
The mainland Chinese index climbed over 13% so far this year.
Overnight stateside, the three major benchmarks ended the trading day higher. The S&P 500 rose as Wall Street looked beyond President Donald Trump’s removal of Federal Reserve Governor Lisa Cook from the central bank’s board and awaited quarterly figures from chip giant Nvidia.
The broad market S&P 500 settled up 0.41% at 6,465.94. The tech-heavy Nasdaq Composite also added 0.44% to end the day at 21,544.27. The blue-chip Dow Jones Industrial Average added 135.60 points, or 0.30%, to finish at 45,418.07.
— CNBC’s Sean Conlon, Sarah Min and Christina Cheddar Berk contributed to this report.