Mixed Signals from Asia-Pacific Markets Amid Tariff Worries

Stock markets across the Asia-Pacific region presented a mixed picture on Wednesday, as investors grappled with the implications of US tariffs and China's retaliatory measures. The financial landscape was further complicated by the latest economic data releases, which painted a varied picture of the region's services sector activity.

Economic Indicators Show Varied Performance

According to S&P Global, Australia's services sector showed signs of recovery, with activity increasing to 51.2 in January. Similarly, Japan's services activity rose to 53, indicating a positive trend. However, China's services performance saw a decline, dropping to 51, which added to the market's uncertainty.

Market Movements Across the Region

In mainland China, the Shenzhen Composite remained flat, while the Shanghai Composite fell by 0.83%. Hong Kong's Hang Seng index experienced a 1.15% drop. Meanwhile, Japan's Nikkei 225 remained stable, and South Korea's Kospi Composite saw a 1.09% improvement. Australia's S&P/ASX 200 ended the day on a positive note, rising by 0.51%.

Currency Fluctuations

The dollar weakened against the yen, trading 0.63% lower, which added another layer of complexity to the day's financial news.