(Sharecast News) - Asia-Pacific equities were mixed on Wednesday as investors digested trade data from Japan and the formation of its new cabinet, while South Korea extended its record-setting rally.
Patrick Munnelly, market strategy partner at TickMill, noted that gold and silver prices bounced back after experiencing their steepest declines in years, while Asian markets trimmed earlier losses following a "tepid session" on Wall Street.
"Gold rebounded after suffering a sharp 2.9% drop on Tuesday, marking its largest single-day fall in over 12 years, although the yellow metal remains up over 55% year to date," he said.
"Meanwhile, silver also regained some ground, recovering from a 7.1% plunge in the previous trading session.
"Asian markets' regional barometer saw shares dip 0.2%, though it had fallen more significantly earlier in the day.
"The downturn in the region's stock markets was partly driven by a selloff in precious metal-related stocks, stretching from Australia to China and Indonesia."
Markets mixed as Tokyo benchmark takes a breather
Japan's Nikkei 225 ended nearly flat, easing 0.02% to 49,307.74 and pausing its recent record-breaking run, as investors weighed export data that showed shipments rose in September for the first time in five months but missed economists' forecasts.
The broader Topix index gained 0.52% to 3,266.43, hitting a new record high.
Shares of SoftBank Group slid 4.9% after an early plunge of more than 10%, while Screen Holdings and Sumitomo Metal Mining fell 4.17% and 7.04% respectively.
Political focus remained on newly sworn-in prime minister Sanae Takaichi, who appointed Satsuki Katayama as Japan's first female finance minister and Shinjiro Koizumi as defence minister.
South Korea's Kospi continued to outshine regional peers, climbing 1.56% to a record 3,883.68 and marking its sixth straight winning session.
The Kosdaq advanced 0.76% to 879.15.
Gains in Seoul were led by Isu Chemical and SM Bexel, both up nearly 30%, while LG Chem surged 13% after activist investor Palliser Capital urged the company to overhaul its board and initiate a share buyback.
Chinese equities declined, with the Shanghai Composite down 0.07% at 2,942.76 and the Shenzhen Component off 0.62% at 12,996.61.
Losses were steep among technology and industrial names, as Keboda Technology, Arcplus Group and Shanghai Huayi Group each tumbled close to 10%.
Munnelly added that "three major Asia Pacific stock exchanges are cracking down on crypto-focused companies posing as listed firms".
"Hong Kong Exchanges & Clearing has blocked at least five firms from adopting digital-asset treasury strategies, citing rules against large liquid holdings, according to confidential sources," he said.
"None have received approval so far. Similar resistance has emerged in India and Australia.
"This pushback coincides with mounting pressure on cryptocurrencies and related firms, threatening a digital-assets rally that has dominated 2025.
"Bitcoin reached a record above $126,000 on 6 October, up 18% year-to-date, driven by companies hoarding the token."
Hong Kong's Hang Seng index shed 0.94% to 25,781.77, dragged lower by declines in Chow Tai Fook Jewellery, CSPC Pharmaceutical and NetEase.
Pop Mart, maker of the globally popular Labubu toys, gained 2.4% after reporting a 250% jump in third-quarter revenue.
In Australia, the S&P/ASX 200 dropped 0.71% to 9,030.00 as miners led losses following a brief rally in rare earths on news of a US-Australia critical minerals agreement.
Genesis Minerals, Evolution Mining and Ramelius Resources each sank about 10%.
Across the Tasman Sea, New Zealand's S&P/NZX 50 also fell 0.53% to 13,306.44, with Vital Healthcare Property Trust, SkyCity Entertainment and Scales Corporation all weaker.
In currency markets, the yen strengthened slightly, with the dollar last down 0.11% to trade at JPY 151.76.
The greenback also slipped 0.1% against the Aussie to AUD 1.5397, and 0.11% on the Kiwi to NZD 1.7399.
Oil prices were higher, with Brent crude futures last up 1.52% on ICE at $62.25 per barrel, while the NYMEX quote for West Texas Intermediate gained 1.64% to $58.18.
Munnelly noted that "the dollar and Treasury yields remained relatively stable, while oil prices climbed higher amid reports of ongoing trade talks between the US and India".
"The negotiations suggest India may gradually scale back its imports of Russian crude oil," he said.
Exports rise in Japan for first time in five months
In economic news, Japan's exports rose in September for the first time in five months, buoyed by stronger demand from Asia that helped offset a steep fall in shipments to the United States amid renewed trade tensions.
Official data released Wednesday showed exports climbed 4.2% year on year, supported by a 9.2% increase in sales to Asia and a 5.8% gain to China.
Exports to the US tumbled 13.3%, marking a sixth consecutive month of decline, with auto shipments down 24.2% as US president Donald Trump's tariffs weighed on the sector.
Imports grew 3.3% overall, including a 9.8% jump in purchases from China.
The trade figures were published a day after Sanae Takaichi became Japan's first female prime minister following a parliamentary vote.
Known for her conservative and nationalist views, Takaichi had pledged higher wages, increased public spending and continued monetary easing - policies seen as supportive of a weaker yen and beneficial for exporters.
However, she faced significant political hurdles, with her ruling Liberal Democratic Party and its coalition partners lacking a majority in both chambers of parliament.
Her leadership challenge came ahead of a planned visit by Trump later this month, following his July trade framework that imposed a 15% tariff on Japanese goods - lower than the 25% initially proposed - in exchange for Tokyo's pledge to invest $550bn in the US and open its market further to American exports.
Reporting by Josh White for Sharecast.com.
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