Source: Sharecast
Investors assessed local corporate movers and economic data, including another drop in Japanese exports amid renewed US tariffs.
Patrick Munnelly, market strategy partner at TickMill, said oil prices reached their highest point in a week, while the dollar lost value following CNN's report of new US intelligence indicating that Israel could be planning a potential strike on Iranian nuclear sites.
“CNN noted that it was unclear whether Israeli officials had finalised their decision to proceed with the strikes, citing unnamed sources.
“Safe-haven currencies like the Swiss franc and the yen gained slightly; the yields on Japanese super-long government bonds fell after surging on Tuesday, whereas the 30-year US Treasury yield remained around the 5% level.”
Munnelly said geopolitical uncertainties could pose challenges for the markets, which had recently stabilised following a month of chaos caused by the tariff measures introduced by US president Donald Trump.
“Investors are looking for signs that the recent stock market gains can be maintained, even as the Federal Reserve seeks a clearer understanding of the economy before adjusting interest rates downwards.
“Oil prices have been volatile since last week due to mixed reports about the state of Iran-US nuclear negotiations, which could lead to an increase in oil supply in a market projected to be oversupplied later this year.
“An Israeli attack would obstruct any advancements in those talks and contribute to instability in the Middle East, a region responsible for roughly one-third of the world's crude oil supply.”
Most markets rise, with Japan the notable exception
Japan’s Nikkei 225 fell 0.61% to 37,298.98, led lower by steep declines in Sompo Holdings, which dropped 7.09%, followed by DeNA and Advantest, down 4.48% and 3.64% respectively.
The broader Topix index edged down 0.22% to 2,732.88.
The losses came as Japan reported a second consecutive monthly decline in exports, pressured by US trade policy under president Trump.
In contrast, Chinese stocks gained, with the Shanghai Composite rising 0.21% to 3,387.57 and the Shenzhen Component adding 0.44% to 10,294.22.
Leading gainers included Henan Dayou Energy, ARTS Group, and Shaanxi Baoguang Vacuum Electronic Apparatus, each surging just over 10%.
Hong Kong’s Hang Seng Index climbed 0.62% to 23,827.78, driven by strong performances from Zijin Mining Group, Zhongsheng Group, and ANTA Sports Products, which rose 7.91%, 6.99%, and 5.77% respectively.
In South Korea, the Kospi 100 gained 0.69% to 2,613.64.
Samsung C&T surged 11.74%, while Samsung Biologics and SK Bioscience advanced 7.11% and 5.78% respectively.
Australia’s S&P/ASX 200 increased 0.52% to 8,386.80, lifted by strong gains in mining and tech stocks.
Perseus Mining rose 9.73%, Seek added 6.95%, and Evolution Mining climbed 6.91%.
New Zealand’s S&P/NZX 50 also closed higher, up 0.47% at 12,703.10.
Travel and tech firms led gains, with Serko rising 4.08%, Vista Group International up 3.99%, and Tourism Holdings gaining 3.57%.
In currency markets, the dollar was last down 0.35% on the yen to trade at JPY 144.01, while it lost 0.2% against the Aussie to AUD 1.5536, and retreated 0.02% from the Kiwi, changing hands at NZD 1.6873.
Oil prices continued to rise, with Brent crude futures last up 1.07% on ICE to $66.08 per barrel, while the NYMEX quote for West Texas Intermediate advanced 1.16% to $62.75.
Japan export growth slows as US tariffs bite
In economic news, Japan’s export growth slowed for a second consecutive month in April, as new trade barriers from the United States weighed on outbound shipments.
Official data showed exports rose 2% year-on-year, matching economists’ expectations but marking the weakest pace since October and following a contraction of 1.7% in September.
Imports fell 2.2% over the same period, a softer decline than the 4.5% drop forecast by analysts, suggesting continued domestic demand pressures.
The trade data comes alongside figures showing that Japan’s economy shrank at an annualised rate of 0.7% in the first quarter, as subdued consumer spending and slowing exports dampened growth.
Reporting by Josh White for Sharecast.com.