Asian equities opened mixed on Wednesday as renewed tariff headlines and lingering geopolitical risks countered a modest rebound on Wall Street, while oil steadied after Tuesday’s pullback. Early trade saw Japan and Korea slip, Australia edge higher, and Hong Kong futures point to a cautious uptick.
Market snapshot
Japan’s Nikkei 225 eased in early trade alongside the Topix, while South Korea’s Kospi also dipped as chip names cooled after recent strength. Australia’s S&P/ASX 200 outperformed at the open, tracking firmer SPI futures into the session. Indications for Hong Kong pointed to a slightly stronger start, though overall risk appetite remained tentative.
Oil steadies as geopolitics loom
Crude prices were broadly steady after a two-day swing, with traders weighing war-related supply risks against signs of softer demand. The absence of a durable risk premium reflects a market still unconvinced that disruptions will materially tighten balances near term.
What’s driving sentiment
Beyond earnings drips in the region, traders are focused on policy clouds: evolving US tariff measures and their second-order effects on Asian export expectations; China’s still-gradual policy support; and currency moves as the dollar holds firm. Together, these factors keep regional beta capped despite constructive leads from the US overnight.
What to watch next
Attention turns to any guidance from Chinese authorities on growth support, Australian retail data later in the week, and semiconductor order commentary out of Korea and Taiwan. In energy, any escalation around Black Sea and Russian refinery outages could re-inject a supply risk premium, lifting Asia’s import costs and potentially pressuring equities.
REFH – Newshub, 27 August 2025
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