Asia markets dip, led by tech selloff as investors await U.S. inflation data

[stock market data]

Asia markets mostly lower on Wednesday, as tech stocks led the retreat following a modest pullback in Wall Street’s Nasdaq ahead of key U.S. inflation data later this week and the FOMC meeting next week.

Gold prices hovered around $4,120 per ounce on Wednesday, stabilizing after a sharp drop of over 5% in the previous session, the steepest since 2021.

Japan (NKY:IND [https://seekingalpha.com/symbol/NKY:IND]) rose 0.10% to below 48,900 on Wednesday, pulling back from record highs. The Japanese yen [https://seekingalpha.com/symbol/USD:JPY#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] traded around 151.7 per dollar on Wednesday, after a sharp fall in the previous session following the election of Sanae Takaichi as prime minister.

Japan reported a trade deficit of JPY 234.6 billion [https://seekingalpha.com/news/4506458-japan-misses-surplus-forecast-with-jpy-2346b-trade-deficit-exports-rise-42-imports-hit-8-month-high] in September 2025, significantly missing market expectations, which had forecasted a JPY 22 billion surplus, with exports rising 4.2% year-on-year—the first increase since April. Concurrently, imports climbed 3.3% to an eight-month high of JPY 9,648.3 billion, driven by Tokyo’s measures to stimulate consumption.

Japan’s new economics minister, Minoru Kiuchi, vowed to prop up the economy amid higher U.S. tariffs and domestic inflation. “It is undeniable that the recovery in personal consumption still lacks strength amid continued inflation,” he said Wednesday.

China (SHCOMP [https://seekingalpha.com/symbol/SHCOMP]) fell 0.07% to around 3,910 while the Shenzhen Component fell 0.2% to 13,050 on Wednesday, snapping a two-day winning streak as persistent trade uncertainty weighed on sentiment, and the offshore yuan [https://seekingalpha.com/symbol/USD:CNY#source=url_first_level%3Amarket-news%7Csection%3Aglobal%7Csection_asset%3Afull_story%7Cbutton%3Abody_link] held steady around 7.12 per dollar on Wednesday, as markets remained cautious amid developments in US-China trade negotiations.

China’s urban youth unemployment rate for 16- to 24-year-olds, excluding students, declined to 17.7% in September 2025, down from August’s 18.9%, which was the highest level since December 2023, and slightly above 17.6% a year earlier.

Meanwhile, the Chinese Communist Party’s Fourth Plenum, which runs through Thursday, is set to chart the country’s next five-year economic development plan.

Hong Kong (HSI [https://seekingalpha.com/symbol/HSI]) fell 1.09% to 25,922 in early trade on Wednesday, reversing gains from the prior session amid broad-based losses.

India (SENSEX [https://seekingalpha.com/symbol/SENSEX]) market closed. India and the U.S. are close to finalizing a long-stalled trade deal that would cut U.S. tariffs on Indian imports from 50% to 15–16%, India's Mint reported.

India's infrastructure output grew by 3% yoy in September 2025, the slowest pace in three months, sharply down from a revised 15-month high of 6.5% in August.

Australia (AS51 [https://seekingalpha.com/symbol/AS51]) fell 0.71% to around 9,000 in Wednesday morning trade, pulling back from a record close in the previous session, with gold stocks and heavyweight miners leading the market lower. The Australian dollar [https://seekingalpha.com/symbol/AUD:USD#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] remained under pressure below $0.650, holding near two-month lows amid growing bets of a near-term rate cut by the Reserve Bank of Australia.

In the U.S. on Tuesday, all three major indexes ended higher [https://seekingalpha.com/news/4506046-wall-street-dow-sp500-nasdaq] for a third straight session as a strong start to earnings outweighed lingering US China trade uncertainty.

Investors now await Tesla’s earnings on Wednesday for further cues on the sector, and look ahead to Friday’s CPI report amid a data blackout from the ongoing US government shutdown.

U.S. stock futures were steady on Wednesday as traders evaluated the latest round of corporate results: Dow +0.18%; S&P 500 +0.19%; Nasdaq +0.10%.

CURRENCIES: (JPY:USD [https://seekingalpha.com/symbol/JPY:USD]), (CNY:USD [https://seekingalpha.com/symbol/CNY:USD]), (AUD:USD [https://seekingalpha.com/symbol/AUD:USD]), (INR:USD [https://seekingalpha.com/symbol/INR:USD]), (HKD:USD [https://seekingalpha.com/symbol/HKD:USD]), (NZD:USD [https://seekingalpha.com/symbol/NZD:USD]).

MORE ON ASIA:

Japan misses surplus forecast with JPY 234.6B trade deficit; exports rise 4.2%, imports hit 8-month high [https://seekingalpha.com/news/4506458-japan-misses-surplus-forecast-with-jpy-2346b-trade-deficit-exports-rise-42-imports-hit-8-month-high#source=url_first_level%3Amarket-news%7Csection%3Amarket-news%7Csection_asset%3Anews_title]

China's Q3 GDP 4.8% Y/Y, hits slowest pace since 2024, but beats quarterly expectations [https://seekingalpha.com/news/4505470-chinas-11-q3-gdp-beats-forecasts-on-policy-boost-but-trade-war-looms#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

PBoC holds key lending rates steady for fifth straight month [https://seekingalpha.com/news/4505472-pboc-holds-key-lending-rates-steady-for-fifth-straight-month#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

China's industrial output surges 6.5%, consumer spending slows to 1-year low; jobless rate falls to 5.2% in September [https://seekingalpha.com/news/4505473-chinas-industrial-output-surges-65-consumer-spending-slows-to-1-year-low-jobless-rate-falls-to-52-in-september#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

Australia jobless rate rises to 4.5% in Sept; employment growth misses estimates [https://seekingalpha.com/news/4504616-australia-jobless-rate-rises-to-45-in-sept-employment-growth-misses-estimates#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]