Asia stocks mixed as Fed rate cut looms; Australian shares dragged by hotter inflation

[stock market data]

Asia stocks trade mostly rise on Wednesday, tracking gains made overnight by major U.S. indexes, where optimism surrounding artificial intelligence (AI) continued to fuel sentiment, and intense focus on the upcoming U.S. Federal Reserve policy decision.

Optimism over a potential US–China trade deal also lifted sentiment ahead of Thursday’s meeting between US President Donald Trump and Chinese President Xi Jinping. Australian shares declined after the release of the latest quarterly inflation figures.

Silver rose to around $47.5 per ounce on Wednesday, moving away from one-month lows in a likely technical rebound. Gold prices rose to around $3,970 per ounce on Wednesday, pausing its recent decline, as attention turned to the Federal Reserve’s expected rate cut later in the day.

Singapore’s Domestic Supply Price Index grew by 3.7% year-on-year in September 2025, accelerating from a 1.1% rise in the previous month.

Producer prices in Malaysia fell 0.8% year-on-year in September 2025, easing from a 2.8% decline in the previous month.

The South Korean won weakened to around 1,433 per dollar on Wednesday, extending losses for the second session, as investors remained cautious amid the APEC summit talks in Gyeongju.

Japan (NKY:IND [https://seekingalpha.com/symbol/NKY:IND]) rose 2.05% to above 51,000 on Wednesday, marking fresh record highs. The Japanese yen [https://seekingalpha.com/symbol/USD:JPY#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] strengthened past 152 per dollar on Wednesday, rising for a second straight session as investors positioned for the Bank of Japan’s policy decision this week.

Japan’s consumer confidence index rose to 35.8 in October 2025 from 35.3 in September, surpassing market forecasts of 35.6.

China (SHCOMP [https://seekingalpha.com/symbol/SHCOMP]) rose 0.43% to above 3,990 while the Shenzhen Component gained 0.7% to 13,520 on Wednesday, recouping losses from the previous session, 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] traded around 7.09 per dollar on Wednesday, hovering near a one-year high as optimism persisted ahead of the highly anticipated meeting between Presidents Donald Trump and Xi Jinping.

On Wednesday, Beijing announced that it has excluded electric vehicles from its list of strategic industries in the 2026–2030 five-year development plan, marking their first omission in over a decade as the sector struggles with oversupply.

U.S. President Donald Trump signaled plans to reduce fentanyl-related tariffs on Chinese exports ahead of his upcoming meeting with Chinese President Xi Jinping in South Korea.

Bank of China shares also advanced to two-month highs after posting a 5% rise in Q3 profit.

Domestically, investor attention now shifts to upcoming PMI releases, with official data scheduled for this week and private surveys set for next week.

Hong Kong (HSI [https://seekingalpha.com/symbol/HSI]) market closed.

India (SENSEX [https://seekingalpha.com/symbol/SENSEX]) rose 0.18% to 84,779 in early trade on Wednesday, halting losses from the previous session.

Australia (AS51 [https://seekingalpha.com/symbol/AS51]) fell 0.95% dropped 0.8% to around 8,940 on Wednesday, hitting a two-week low, as faster-than-expected inflation data strengthened bets that the Reserve Bank of Australia will keep rates on hold for longer. The Australian dollar [https://seekingalpha.com/symbol/AUD:USD#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] strengthened to around $0.660 on Wednesday, hitting its highest level in three weeks.

Annual inflation rose to a more than one-year high of 3.5% in September from 3% in August, surpassing the 3.1% forecast and moving further above the Reserve Bank’s 2-3% target range. In the third quarter, inflation accelerated to 3.2% from 2.1% previously, above expectations of 3%.

In the U.S. on Tuesday, all three major indexes ended higher [https://seekingalpha.com/news/4509358-wall-street-dow-sp500-nasdaq], reaching new all-time highs as an expected Fed rate cut, easing US-China trade tensions and upbeat corporate updates particularly in the tech sector boosted sentiment.

Meanwhile, Nvidia shares rose 1.7% in extended trading, adding to Tuesday’s record-setting rally, after unveiling partnerships with the US government, Oracle, Uber and Eli Lilly, among others.

Attention also turned to earnings from “Magnificent Seven” giants, with Alphabet, Meta and Microsoft set to report after Wednesday’s close, followed by Apple and Amazon on Thursday.

U.S. stock futures were little changed on Wednesday as investors awaited the Federal Reserve’s policy decision: Dow +0.02%; S&P 500 +0.23%; Nasdaq +0.36%.

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]