Asian shares were mixed on Wednesday, mirroring Wall Street’s lacklustre performance as tech-sector losses, including Tesla’s sharp fall, slowed the market’s recent rally.
U.S. futures inched higher, and oil prices saw little movement.
In Tokyo, the Nikkei pared early losses but still slipped 0.3% to 39,874.33 as concerns grew over stalled trade talks with the U.S. Market jitters intensified after President Donald Trump warned there would be no extension to his tariff pause beyond July 9.
“The negotiating table just turned into a pressure cooker,” said Stephen Innes of SPI Asset Management, noting Trump’s threat of tariffs as high as 35% if Japan does not concede.
Hong Kong’s Hang Seng rose 0.6% to 24,220.65, while the Shanghai Composite was nearly flat at 3,456.51. South Korea’s KOSPI lost 1.2% to 3,053.39 as June inflation climbed, and Australia’s S&P ASX 200 edged up 0.4% to 8,580.70.
On Wall Street, the S&P 500 dipped 0.1% to 6,198.01, snapping a four-day winning streak. The Dow Jones rose 0.9% to 44,494.94, while the Nasdaq fell 0.8% to 20,202.89.
Tesla slid 5.3%, weighed down by the escalating feud between CEO Elon Musk and Trump, which threatens government contracts and subsidies for Musk’s companies. Tesla has now lost over 25% of its value this year.
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Other AI-linked tech stocks also weakened, with Nvidia down 3%, dragging on the broader market.
In contrast, casino operators rallied on stronger-than-expected gaming revenue from Macao. Las Vegas Sands jumped 8.9%, Wynn Resorts gained 8.8%, and MGM Resorts rose 7.3%. Automakers also performed well, with General Motors up 5.7% and Ford rising 4.6%.
Despite Wall Street’s rebound from a spring sell-off, risks remain. Trump’s paused tariffs are set to resume in a week, potentially hurting economic growth and pushing inflation higher. Planned tax cuts could further increase U.S. debt, adding to inflation concerns.
Meanwhile, Barclays strategists noted signs of “excess optimism” among investors, reminiscent of past speculative bubbles.
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In commodities, U.S. crude edged up to $65.46 a barrel, and Brent crude rose to $67.16. The dollar strengthened to 143.58 yen, while the euro slipped to $1.1798.
Source: Agency