Hang Seng up 1%, Nikkei slips 60 points: Asian stocks mixed amid US-China tariff uncertainty

Asian shares traded in mix on Wednesday, amid cautious optimism after the United States and China agreed to a temporary pause to the ongoing trade war. Despite the encouraging news, gains were modest and investor sentiment remained tentative.

Japan’s Nikkei fell by 0.17%, shedding 66.38 points reaching 38,116.88.

Meanwhile, Shanghai edged up by 0.9%, adding 30.4 points to trade at 3,405.27. Hong Kong’s Hang Seng led the gains, rising 1.86% or 429.36 points to 23,537.63 as of 11.35 am IST.

The 90-day trade truce between Washington and Beijing has been met with mild relief, though concerns remain over how long the pause will last and what direction tariffs might take in the months ahead.

“In the absence of a lasting deal, uncertainty over where tariff rates will settle and the impact of those already implemented will remain key factors in our macroeconomic forecasts,” said Brian Coulton, chief economist at Fitch Ratings, quoted by AP.

In the west, US markets responded positively to fresh data showing inflation cooled slightly last month. The S&P 500 rose 0.7% to 5,886.55, driven by strong performance in tech and AI stocks, including a 5.6% jump in Nvidia. The Nasdaq composite advanced 1.6% to 19,010.08, while the Dow Jones Industrial Average slipped 0.6% to 42,140.43.

Oil prices slipped, with benchmark US crude falling 44 cents to $63.23 a barrel. Brent crude, the global benchmark, declined by 46 cents to $66.17.

In currency markets, the US dollar edged down to 147.16 yen, while the euro strengthened marginally to $1.1192.