Asian stock markets traded mixed on Wednesday, with several major indices easing after strong gains earlier in the week. In contrast, South Korean equities climbed to new record highs, supported by renewed optimism around artificial intelligence and the semiconductor sector.
Sentiment across the region remained cautious amid rising geopolitical tensions. China announced new export restrictions on Japan, targeting items that could have potential military applications. The move added uncertainty to Asian markets and weighed on broader risk appetite.
China’s Ministry of Commerce said the measures ban the export of dual-use goods to Japan for defense-related purposes. The restrictions escalated an ongoing dispute between Asia’s two largest economies, linked to comments made last year by Japanese Prime Minister Sanae Takaichi regarding Taiwan.
KOSPI hits record as AI optimism lifts South Korea
Overnight, Wall Street ended higher, driven by gains in technology stocks after Nvidia unveiled details about its next generation of AI processors.
In South Korea, the benchmark KOSPI surged more than 1% to a fresh all-time high of 4,611.72 points, extending its rally following strong year-end performance.
Major chipmakers Samsung Electronics and SK Hynix rose between 3% and 5%, as investors grew more optimistic about earnings prospects across the semiconductor industry.
Elsewhere in Asia, momentum faded after recent rallies. Japan’s TOPIX index slipped 0.5% from record territory, while the Nikkei 225 also fell 0.5%, as traders locked in profits after a solid start to the year.
Hong Kong shares moved lower, with the Hang Seng Index dropping 1% following sharp gains in previous sessions led by technology stocks.
In mainland China, the CSI 300 index was flat, while the Shanghai Composite edged 0.3% higher.
Australia CPI data in focus
Australian equities were modestly weaker as investors assessed November inflation figures, which showed consumer price growth slowing but still remaining above the central bank’s preferred range.
The data reinforced expectations that the Reserve Bank of Australia is likely to keep interest rates unchanged in the near term. Policymakers are seeking clearer signs that underlying inflation pressures are easing before considering any policy shift.
Australia’s S&P/ASX 200 index rose 0.4%.
Elsewhere, Singapore’s Straits Times Index traded largely flat, while India’s Nifty 50 slipped 0.1%.
