Asia-Pacific markets trade mixed on Wednesday, following Wall Street gains overnight after US President Donald Trump's less aggressive stance on tariffs. Investor sentiment soured after U.S. President Donald Trump said that his team was discussing a 10% tariff on China as early as Feb.

Investors in Asia also await China's inflation data for December. Economists polled by Reuters expect growth in consumer prices to remain near zero while producer prices are estimated to slide.

China is slated to release its December trade data later in the day, while India is expected to report its inflation figures for the same month.

Global stocks gained on Wednesday as a flurry of new policies from U.S. President Donald Trump combined with robust corporate earnings to bolster investor optimism, while tariff uncertainty kept the dollar near two-week lows.

People walk inside the Korea Exchange (KRX) building, as stock markets in Asia as a whole have been affected by the intensifying political turmoil over president Yoon Suk Yeol’s role in martial law, in Seoul, South Korea, on Dec. 9, 2024.

The U.S. Federal Reserve announced on Friday it had withdrawn from a global body of central banks and regulators devoted to exploring ways to police climate risk in the financial system.

The Taiwan dollar is on the verge of overtaking the yuan as Asia’s best carry-trade target given its lower risk of interest-rate and currency volatility.Most Read from BloombergThese Homes Withstood the LA Fires.

The downward start in Asia comes as a global risk rally this week, fueled by traders re-adjusting Federal Reserve interest rate cut bets following Wednesday’s benign inflation data, loses steam.

Asian shares are facing additional downward pressure from prospects of fewer Fed rate cuts in 2025. The Fed reduced rates by 100 basis points in 2024, but signaled fewer-than-expected cuts in 2025 in the face of sticky inflation and a resilient economy.

ASIAN markets extended a global rally on Thursday after below-forecast US inflation provided a much-needed shot of relief to investors and revived hopes for interest rate cuts this year. Read more at The Business Times.

China is slated to release its December trade data later in the day, while India is expected to report its inflation figures for the same month.

Economists are split on whether Singapore's central bank will loosen monetary policy this week or leave its settings unchanged to wait to see what policies U.S. President Donald Trump introduces in his second term.