Asia markets rise tracking Wall St gains, investors digests data showing China's inflation weaker than expected

[Candlestick chart and data of financial market.]
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Asia stock advance on Wednesday, tracking gains and record closes on Wall Street’s S&P 500 and Nasdaq, with traders positioning for likely Fed rate cuts next week and awaiting key U.S. inflation data. Market participants also digested new data showing that China's inflation was weaker than expected, underscoring persistent deflationary challenges for the Chinese economy.

Meanwhile, reports indicate that US President Donald Trump has urged the EU to impose 100% tariffs on Chinese and Indian goods to pressure Russian President Vladimir Putin to end the Ukraine war, with the U.S. signaling it could implement similar measures.

SEPARATELY ON THE GEOPOLITICAL FRONT, Ukraine has formally requested a new financing program from the International Monetary Fund as the war with Russia continues to strain its finances, Prime Minister Yulia Svyrydenko said on Tuesday.

Nepal’s Prime Minister KP Sharma Oli resigned on Tuesday amid escalating anti-government protests, following deadly clashes that left 19 people dead—the country’s worst violence in decades.

Silver climbed above $41 per ounce on Wednesday, holding near 14-year highs. Gold rose to around $3,640 per ounce on Wednesday, approaching the record high reached in the previous session.

Japan (NKY:IND [https://seekingalpha.com/symbol/NKY:IND]) rose 0.77% to around 43,690 while the broader Topix Index added 0.4% to 3,135 on Wednesday, rebounding from the prior session’s losses. The Japanese yen [https://seekingalpha.com/symbol/USD:JPY#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] held around 147.3 per dollar on Wednesday after sharp swings earlier in the week.

In Japan, a private survey showed manufacturer sentiment climbed to its highest level in over three years in September, supported by easing trade uncertainties following a tariff deal with the US.

China (SHCOMP [https://seekingalpha.com/symbol/SHCOMP]) rose 0.23% to above 3,810 while the Shenzhen Component slipped 0.3% to 12,470 on Wednesday, with mainland markets lacking clear direction as investors weighed fresh inflation figures, 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 for the second consecutive session at around 7.12 per dollar.

China’s consumer prices dropped by 0.4% in August [https://seekingalpha.com/news/4493575-chinas-consumer-prices-fall-by-04-in-august-producer-prices-decline-for-35th-straight-month], after being flat in the previous month and missing market expectations of a 0.2% fall, marking the steepest decline in six months. Meanwhile, producer prices fell for the 35th consecutive month, decreasing by 2.9% y/y in August 2025.

Investors are now closely monitoring potential policy signals as the 14th NPC Standing Committee convenes its 17th session from today through Friday.

On the corporate side, Chinese tech firms in Apple’s supply chain gained after the company unveiled new iPhones, Apple Watches and AirPods on Tuesday, with Foxconn Industrial jumping 9.4%.

Hong Kong (HSI [https://seekingalpha.com/symbol/HSI]) rose 1.32% to 26,187 around midday on Wednesday, extending gains for the fourth straight session and holding at their highest level in four years amid broad-based advances.

India (SENSEX [https://seekingalpha.com/symbol/SENSEX]) rose 0.65% to 81,573 in early trade on Wednesday, marking their third consecutive session of gains and reaching the highest level in over two weeks.

The potential trade talks between US President Donald Trump and Indian Prime Minister Narendra Modi, as well as ongoing momentum from GST reforms that took effect on September 22, which have boosted hopes for stronger domestic demand.

However, traders remained cautious ahead of India’s August inflation data, with expectations of a rise to 2.1%.

Australia (AS51 [https://seekingalpha.com/symbol/AS51]) rose 0.30% around 8,802 on Wednesday, pausing after two straight sessions of losses, as investors weighed the latest global trade developments. The Australian dollar [https://seekingalpha.com/symbol/AUD:USD#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] edged higher to above $0.659 on Wednesday, approaching its highest level in seven weeks, boosted by higher commodity prices.

In the U.S. on Tuesday, all three major indexes ended higher, [https://seekingalpha.com/news/4493391-sp500-dow-jones-nasdaq-composite-stock-news-today-jobs]despite signs of a slowing economy. Investors digested revised labor data showing the US added 911,000 fewer jobs than previously estimated in the year through March, the largest downward revision since 2002.

Focus also shifted to two key inflation readings this week that could guide the next policy move, with the August producer price index due Wednesday and the consumer price index Thursday.

U.S. stock futures were little changed on Wednesday as investors awaited key inflation reports: Dow -0.07%; S&P 500 +0.28%; Nasdaq +0.18%.

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:

China's consumer prices fall by 0.4% in August, producer prices decline for 35th straight month [https://seekingalpha.com/news/4493575-chinas-consumer-prices-fall-by-04-in-august-producer-prices-decline-for-35th-straight-month#source=url_first_level%3Amarket-news%7Csection%3Amarket-news%7Csection_asset%3Anews_title]

China posts higher-than-expected trade surplus despite weakening exports [https://seekingalpha.com/news/4492921-china-posts-higher-than-expected-trade-surplus-despite-weakening-exports#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

Japan's upward GDP revision contrasts with political uncertainty after Ishiba's resignation [https://seekingalpha.com/news/4492925-japans-upward-gdp-revision-contrasts-with-political-uncertainty-after-ishibas-resignation#source=url_first_level%3Amarket-news%7Csection%3Amarket-news%7Csection_asset%3Anews_title]

Japan Prime Minister Ishiba to step down [https://seekingalpha.com/news/4492882-japan-prime-minister-ishiba-to-step-down]

J [https://seekingalpha.com/news/4492571-japans-real-wages-turn-positive-for-first-time-in-eight-months-to-05-in-july-trumps-tariff-cut-boosts-japan#source=url_first_level%3Amarket-news%7Csection%3Amarket-news%7Csection_asset%3Anews_title]apan's real wages turn positive for first time in eight months to 0.5% in July, nominal wage growth hits 7-month high [https://seekingalpha.com/news/4492571-japans-real-wages-turn-positive-for-first-time-in-eight-months-to-05-in-july-trumps-tariff-cut-boosts-japan#source=url_first_level%3Amarket-news%7Csection%3Amarket-news%7Csection_asset%3Anews_title]