Asian Stocks Mixed as Tech Gains Fade, BOJ Rate Hike Fears Weigh on Japan

Asian stock markets were mixed on Wednesday, with Hong Kong and South Korea extending gains driven by Wall Street’s tech rally, while Japan lagged due to a stronger yen and rising interest rate expectations.

The Hang Seng Index rose over 1%, supported by surging Chinese tech stocks like Alibaba and Tencent, following a bullish session for U.S. tech. South Korea’s KOSPI also jumped 1.5%, led by chip giants Samsung Electronics and SK Hynix, after NVIDIA announced a major AI chip deal with Saudi Arabia’s Humain, boosting investor sentiment in the semiconductor space.

However, broader market momentum appeared to fade as enthusiasm over the recent U.S.-China tariff truce cooled. U.S. and China agreed to temporarily cut tariffs — Washington reducing duties from 145% to 30%, and Beijing lowering its rate from 125% to 10% — but investors remain cautious about the next phase of negotiations.

Meanwhile, Japan’s Nikkei 225 slipped 0.8% and the broader Topix lost over 1% as a strengthening yen weighed on exporters. The Japanese currency rose on renewed expectations of a Bank of Japan rate hike, especially after April wholesale inflation climbed to 4.0%. The BOJ is scheduled to meet on May 19–20 to decide on interest rate policy.

China’s Shanghai Composite and CSI 300 were flat, with reduced hopes for further government stimulus amid easing trade tensions. Elsewhere in Asia, Australia’s ASX 200 dipped 0.1%, Singapore’s STI slid 0.3%, and Indian Nifty 50 futures were steady amid geopolitical concerns with Pakistan.

Despite signs of cooling inflation in the U.S., global markets remain cautious ahead of key central bank meetings and trade developments.