Mixed Asian Stocks as Japan Exports Hit 3.5-Year High

Asian markets traded unevenly on Wednesday, following a mixed Wall Street close. In New York, the Dow Jones rose 0.6% to a record closing high of 51,999.67, after briefly crossing 52,000 for the first time to 52,190.29 during the session. The Nasdaq fell 1.2% and the S&P 500 lost 0.6%. In Asia, Japan's Nikkei gained 0.8%, South Korea's Kospi added 0.1%, Hong Kong's Hang Seng slipped 0.5%, and Shanghai edged down 0.1%.

Oil prices steadied after sharp declines a day earlier, with Brent at $79.1 a barrel and WTI at $76.1. Investors are mainly waiting for the Federal Reserve's decision later in the day, the first under new chair Kevin Warsh, with interest rates expected to remain unchanged.

Japan reported a 17% year-on-year jump in exports in May, the strongest increase since November 2022 and above economists' forecast of 16.2%. April's export growth had been 14.8%. The AI boom lifted semiconductor exports by 61.2%, while vehicle exports rose 16.4% annually. Exports to China, Japan's largest trading partner, increased 17.9%, and exports to the United States, its second-largest market, rose 12.5%.

At the same time, the war in Iran cut Japanese exports to the Middle East by 32%. In Japan, Lasertec rose 11.4% in the Nikkei, Japan Steel gained 8%, and Kawasaki Heavy Industries advanced 7.2%, while SoftBank fell 3.5%. In South Korea, Hanwha Ocean jumped 7.7% and Hanwha Aerospace climbed 6.4%, both belonging to the Hanwha group, while Hyundai dropped 3.5% and Samsung C&T fell 3.4%.