Prime Highlights:
- South Korea’s Kospi and Kosdaq indexes reached record highs, boosted by eased U.S. tariff concerns.
- Hong Kong and China markets showed strong gains, reflecting investor confidence despite mixed performance elsewhere in the region.
Key Facts:
- Indonesia’s Jakarta Composite dropped around 8% after MSCI warned of a potential downgrade to frontier-market status.
- Australia’s headline inflation rose to 3.6%, the highest in six quarters, while gold prices reached a new record of $5,255.71 per ounce.
Background:
Asian equity markets ended Wednesday’s session on a mixed note, with South Korean stocks extending their rally to fresh record highs, while Indonesia’s benchmark index suffered a steep decline amid concerns over its market classification.
South Korea’s Kospi index rose for a second consecutive session to an all-time high, gaining 1.69 percent to close at 5,170.81. The tech-heavy Kosdaq surged 4.7 percent to 1,133.52, reflecting strong investor confidence. Market sentiment was lifted after U.S. President Donald Trump struck a conciliatory tone regarding tariff discussions with Seoul, saying the two sides would “work something out,” easing concerns over potential trade disruptions.
Elsewhere in the Asia-Pacific region, markets showed varied performance despite Wall Street’s overnight gains. In the United States, the S&P 500 closed at a record high, supported by advances in major technology stocks including Apple and Microsoft.
Japan’s Nikkei 225 edged into positive territory late in the session, closing marginally higher at 53,358.71. However, the broader Topix index fell 0.79 percent. The Japanese yen strengthened to its highest level in nearly three months against the U.S. dollar, amid growing expectations of possible market intervention.
In Greater China, Hong Kong’s Hang Seng Index rose 2.58 percent, driven mainly by gains in energy stocks. On the mainland, the CSI 300 index added 0.26 percent to end at 4,717.99.
Australian equities reversed earlier gains, with the S&P/ASX 200 slipping 0.13 percent, ending a three-day winning streak. Data showed Australia’s headline inflation rose to 3.6 percent in the final quarter of 2025, its highest level in six quarters, adding pressure to the market.
In contrast, Indonesia’s Jakarta Composite plunged around 8 percent, marking one of its sharpest declines in recent years. The sell-off happened after MSCI warned that Indonesia might be downgraded to frontier-market status because of concerns about market transparency and trading practices.
On the commodities front, spot gold climbed to a record $5,255.71 per ounce, reflecting heightened investor caution. Meanwhile, U.S. stock futures remained largely flat as markets awaited the Federal Reserve’s interest rate decision, with the central bank widely expected to keep rates unchanged.