On Wednesday, Asia-Pacific markets experienced an uptick, diverging from the downward trend observed, following a resurgence of tensions in the trade dispute between the U.S. and China. Japan’s benchmark Nikkei 225 index experienced an increase of 1.76%, reaching 47,672.67, while the Topix saw a rise of 1.58%, climbing to 3,183.64. South Korea’s Kospi experienced an increase of 2.68%, reaching 3,657.28, whereas the small-cap Kosdaq rose by 1.98% to 864.72.

U.S. President Donald Trump on Tuesday criticized China for its failure to purchase soybeans, labeling it “an economically hostile act.” He also threatened “retribution,” including a cooking oil embargo. “Volatility remains elevated, and the best explanation is the strained relationship between the U.S. and China,” Louis Navellier noted. Australia’s ASX/S&P 200 experienced an increase of 1.03%, reaching a level of 8,990.9. The Hang Seng Index in Hong Kong experienced an increase of 2.06%, whereas the mainland’s CSI 300 saw a rise of 1.48%, reaching 4,606.29. India’s Nifty 50 increased by 0.74%. In September, China experienced a greater-than-anticipated decline in consumer prices, while the ongoing deflation in producer prices highlighted the effects of weak domestic demand and trade concerns on both consumer and business sentiment.

The consumer price index decreased by 0.3% in September compared to the previous year, according to data. This decline was more pronounced than the anticipated 0.2% decrease, although it represents a moderation from the 0.4% drop recorded in August. Prices increased by 0.1% month-on-month, reflecting a recovery that fell short of economists’ expectations for a 0.2% rise. Overnight in the U.S., the S&P 500 closed down 0.2% to 6,644.31 in a volatile session that witnessed the benchmark decline by as much as 1.5% and recover to gain 0.4% at its peak.

The Nasdaq Composite experienced a decline of 0.8% to 22,521.70, having previously dipped by as much as 2.1% at one stage. The Dow Jones Industrial Average concluded the trading session with an increase of 0.4%, amounting to 202.88 points, reaching a level of 46,270.46, after experiencing a rise of nearly 1% at one stage. Federal Reserve Chair Jerome Powell on Tuesday indicated that the central bank is approaching a juncture at which it may cease the reduction of its bond holdings, while also offering subtle indications that additional interest rate cuts could be forthcoming.