On Wednesday, Asian markets displayed a mixed outlook as Japan's Nikkei 225 index closed up nearly 1% at 39,277.39, driven by a surge in technology stocks that also lifted the Nasdaq composite to a record high. Meanwhile, Hong Kong's Hang Seng index fell by 1.5% to 20,381.91, and the Shanghai Composite index dropped 0.6% to 3,266.65. In the midst of these market fluctuations, the Bank of Japan initiated a two-day policy meeting.
In a significant development, the European Union enforced increased tariffs, reaching up to 45.3%, on electric vehicles imported from China, resulting from lengthy anti-subsidy investigations that prompted retaliatory measures from Beijing. This move led to a decline in Chinese EV companies' stocks, with Nio, Geely, and BYD witnessing decreases in their stock values. The Ministry of Commerce in China, expressing opposition to the tariffs, released a statement voicing its disagreement with the EU's decision.
The financial landscape was further impacted by Australia's S&P/ASX 200 experiencing a 0.8% dip following a third-quarter inflation rate of 2.8%, the lowest level in over three years as reported by the Australian Bureau of Statistics. Elsewhere, South Korea's Kospi decreased by 0.9% to 2,593.79, and Taiwan's Taiex saw a 0.5% decline in its performance. Additionally, the S&P 500 recorded a 0.2% increase on Tuesday, aided by gains in Big Tech stocks that overshadowed weaknesses in other sectors, with the Nasdaq composite rising by 0.8% and the Dow Jones Industrial Average slipping by 0.4%.