Asia stocks tick up; Australia hits record high, RBI keeps rates steady

Updates with RBI rate decision, latest share moves

Investing.com-- Asian stock markets edged higher on Wednesday, with Australian shares hitting record high levels, while stocks in Mumbai fell after the Reserve Bank of India kept interest rates unchanged as expected.

Wall Street ended lower on Tuesday after the release of weak services data, which added to economic concerns spurred by a soft jobs report last week.

U.S. stock index futures edged lower in Asian trading on Wednesday

RBI keeps rates unchanged; stocks fall

The Reserve Bank of India kept interest rates unchanged at 5.50% on Wednesday in line with market expectations, while maintaining its "neutral" stance, citing steady core inflation.

The central bank said the impact of the frontloaded 0.5% cut in June was yet to be seen in markets.

RBI Governor Sanjay Malhotra said global uncertainties have "somewhat abated," but added that external demand remains uncertain due to ongoing U.S. tariffs and poses risks to the growth outlook.

India’s Nifty 50 index fell 0.4%, as some market participants were expecting a 25 basis point reduction amid subdued inflation growth.

Australia shares hit record high; tariff tensions remain

Australia’s S&P/ASX 200 rose 0.8% to a record high of 8,848.80 points as markets priced in imminent rate cuts from both the Reserve Bank of Australia and the U.S. Federal Reserve.

The RBA is set to meet next week after unexpectedly holding rates steady in its last meeting.

Odds of a September U.S. rate cut surged to nearly 94% following weak U.S. labor market data, reinforcing risk-on sentiment.

However, investor sentiment was tempered by fresh trade tensions. 

In a CNBC interview on Tuesday, President Donald Trump threatened steep tariffs on pharmaceuticals and semiconductors, with drug duties possibly reaching up to 250%.

He also confirmed plans to raise tariffs on Indian imports beyond the current 25% over its Russian oil purchases.

Asian stocks rangebound

Other regional stocks traded mixed with range-bound movements.

South Korea’s KOSPI was muted, while Singapore’s Straits Times Index gained 0.2%

Japan’s Nikkei 225 rose 0.6%, while the broader TOPIX index jumped 1%.

China’s Shanghai Composite index edged up 0.2%, while the Shanghai Shenzhen CSI 300 rose marginally. 

Hong Kong’s Hang Seng index traded largely flat on Wednesday.