South Korea’s consumer price index for January rose 0.7% month on month and 2.2% annually, missing Reuters’ 1.97% estimate.South Korea’s consumer price index for January rose 0.7% month on month and 2.2% annually, missing Reuters’ 1.97% estimate.
Classic Chinese courtyard featuring a stage and red lanterns hanging
Jackyenjoyphotography | Moment | Getty Images
Asia-Pacific markets were mixed Wednesday after Wall Street rose overnight, shrugging off Trump tariffs and China’s retaliatory measures.
All eyes are on China, which resumed trading after the Lunar New Year holidays and as the Chinese government announced tariffs on U.S. imports in retaliation to duties on its exports.
Morningstar’s Asia equity analyst Kai Wang, says China’s tariffs on the U.S. are “largely symbolic given that only about 12% of total imports from the U.S. would be subject to tariffs.”
“A key takeaway from this development, at least for now, is that fundamentally there is less risk implied than expected before. However, escalation of the trade war remains a risk given Trump’s history of unpredictable behavior. Therefore, the volatility risk remains on the table for the next four years at least,” Wang wrote in a Feb. 4 note.
Mainland China’s CSI300 Index started the day up, but reversed course to drop 0.21%.
China’s Caixin Services PMI came in at 51.0 in January, compared with December’s 52.2 reading, showing a slowdown in the country’s services activity.
Hong Kong’s Hang Seng index was down 0.69%, reversing from gains in the previous session.
Japan benchmark Nikkei 225 was down 0.18%, while the broader Topix index was flat.
South Korea’s Kospi was trading 1.19% higher and the small-cap Kosdaq was up 1.39%.
The country’s consumer price index for January rose 0.7% month on month and 2.2% annually — more than Reuters’ 1.97% estimate.
Over in Australia, the S&P/ASX 200 was 0.56% higher.
Overnight in the U.S., the three indexes moved higher following the developments around global trade.
Software player Palantir popped about 24% on fourth-quarter results. AI major Nvidia advancing 1.7% during the session.
The tech-heavy index Nasdaq Composite jumped 1.35% to 19,654.02, while the S&P 500 rose 0.72% to 6,037.88. The Dow Jones Industrial Average climbed 134.13 points, or 0.3%, to 44,556.04.
— CNBC’s Sean Conlon and Pia Singh contributed to this report.