Asian Shares Mixed After Trump's Comments On Taiwan

(RTTNews) - Asian stocks ended mixed on Wednesday while the dollar edged up as Donald Trump's election odds rose and the U.S. Republican presidential candidate said that Taiwan should pay the U.S. for supplying the island with defense equipment.

Regional losses, if any, were limited as U.S. Treasury yields fell on hopes of a September rate cut by the Federal Reserve.

China's Shanghai Composite index dropped 0.45 percent to 2,962.86 as investors awaited the outcome of the ruling Communist Party's third plenum.

Hong Kong's Hang Seng index finished marginally higher at 17,739.41 as the International Monetary Fund (IMF) upgraded its economic outlook this year for China, India and Europe.

Japanese markets retreated as chip-related stocks declined amid concerns that another Trump presidency could disrupt global trade.

Also, the IMF lowered Japan's 2024 growth outlook, citing temporary auto output disruptions and weak private investment in the first quarter.

The Nikkei average dipped 0.43 percent to 41,097.69 while the broader Topix index settled 0.37 percent higher at 2,915.21.

Tokyo Electron plunged 7.5 percent, Screen Holdings gave up 6.5 percent and Advantest fell 2.6 percent.

Seoul stocks fell notably, with the Kospi average finishing 0.80 percent lower at 2,843.29 - snapping a two-day winning streak.

Market bellwether Samsung Electronics dropped 1.1 percent and SK Hynix plummeted 5.4 percent.

Refiner SK Innovation rallied 5.7 percent ahead of a board meeting to determine the company's merger with group affiliate SK E&S.

Australian markets hit record highs, with financials, gold miners and real estate stocks leading the surge. The benchmark S&P/ASX 200 climbed 0.73 percent to 8,057.90 while the broader All Ordinaries index closed up 0.73 percent at 8,303.50.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index jumped 0.88 percent to 12,292.03 after data showed inflation in the country softened by more than expected in the three months through June.

U.S. stocks rose for a third straight session overnight as investors cheered encouraging earnings from the likes of UnitedHealth, Bank of America and Morgan Stanley.

Treasury yields extended recent declines as retail sales came in unchanged in June and a measure of homebuilder sentiment slipped to a 7-month low in July.

The Dow rallied 1.9 percent and the S&P 500 added 0.6 percent to reach new record closing highs while the tech-heavy Nasdaq Composite inched up 0.2 percent.