Nikkei declined by 0.88%, finishing at 41,938.89, whereas the broader Topix index decreased by 1.07%, closing at 3,048.89. Asia-Pacific markets exhibited a mixed performance on Wednesday as investors evaluated the implications of increasing global bond yields alongside the most recent updates regarding trade relations.

Chinese markets captured attention after President Xi Jinping delivered a speech at a military parade marking the 80th anniversary of the conclusion of World War II. The event featured 26 global leaders, among them Russian President Vladimir Putin and North Korea’s leader Kim Jong Un. The Hang Seng index in Hong Kong decreased by 0.6%, finishing at 25,343.43, while the CSI 300 in mainland China dropped by 0.68%, closing at 4,459.83. China General Services purchasing managers’ index, which reflects the country’s services activity, reached a 15-month peak due to increased domestic demand and a recovery in foreign orders. The index, increased to 53.0 in August, up from 52.6 in July. The threshold of 50 points distinguishes between growth and decline.

Authorities in Hong Kong are currently looking into whether regulatory personnel at Hong Kong Exchanges & Clearing and the Securities and Futures Commission shared information with individuals regarding forthcoming announcements from various listed companies over the past few years. In Australia, the S&P/ASX 200 benchmark experienced its largest single-day decline since April 7. The 200-stock benchmark finished down 1.82% at 8,738.80, impacted by losses in technology, real estate, and property sectors. The nation’s GDP for the second quarter increased by 1.8% compared to the previous year, representing the quickest growth rate since September 2023. The most recent data surpassed the 1.6% growth and exceeded the 1.3% recorded in the prior quarter. Yields on Japanese Government Bonds increased, with the yield on 10-year JGBs rising by 3.3 basis points to 1.636%.

Meanwhile, the yield on 30-year JGBs rose by 8.7 basis points to 3.298%, following a record high earlier in the session. Yields on 20-year JGBs increased by 5.5 basis points to 2.686%, following a peak not seen in 26 years earlier in the session. In South Korea, the Kospi index experienced a 0.38% increase in volatile trading, closing at 3,184.42. Meanwhile, the small-cap Kosdaq rose by 0.35%, finishing at 796.81. In other parts of India, the benchmark index saw a rise of 0.23%, while the BSE index experienced a slight increase of 0.12% as of 1:50 a.m. U.S. equity futures generally increased following a federal court decision regarding an antitrust case involving Google-parent Alphabet, which sparked optimism about the ability of major tech companies to manage regulatory challenges.

In the overnight session in the U.S., all three major indices closed the day in the red. The Dow Jones Industrial Average closed lower by 249.07 points, a decline of 0.55%, finishing at 45,295.81. The S&P 500 experienced a decline of 0.69%, finishing at 6,415.54, and the Nasdaq Composite fell by 0.82%, closing at 21,279.63.