Investing.com-- Most Asian stock markets were little changed on Wednesday as investors digested a series of key economic indicators, chiefly weak factory activity data from Japan and China, and Australian CPI inflation.

Meanwhile, Indian stocks edged lower amid rising geopolitical tensions with Pakistan, while equities in South Korea fell amid heightened political unrest in the country.

Regional markets took few cues from a positive overnight close on Wall Street. Major U.S stock indexes closed with modest gains on Tuesday, while futures tied to these benchmark indexes fell in Asian trading on Wednesday as, globally investors awaited key PCE price index data and major corporate earnings due in the coming days.

Trump Tariffs slam China, Japan industrial activity

Fresh economic data from China and Japan revealed a slowdown in industrial activity, largely attributed to escalating U.S. tariffs under President Donald Trump’s administration.

China’s official manufacturing Purchasing Managers’ Index (PMI) fell to 49.0 in April, down from 50.5 in March, indicating a contraction in factory activity.

This decline marks the first contraction since December 2023 and is attributed to the intensifying trade war with the U.S., which has imposed a whopping 145% tariff on Chinese goods.

The Caixin reading also reflected a sharp drop in overseas orders following Trump’s tariffs.

The downturn has prompted calls for economic stimulus as the impact of these tariffs becomes more evident.

China’s Shanghai Composite was muted, while the Shanghai Shenzhen CSI 300 were also unchanged. Hong Kong’s Hang Seng edged 0.3% higher

Meanwhile, Japan’s industrial production decreased by 1.1% m-o-m in March, surpassing market expectations of a 0.5% drop.

These reductions are linked to disrupted auto part supplies, a consequence of the U.S. imposing a 25% tariff on car and truck imports and a temporary 10% tariff on all Japanese goods.

Japan’s Nikkei 225 index was largely muted while TOPIX rose 0.4%, as markets returned after a public holiday.

Australia Q1 CPI supports RBA rate cut bets

Data on Wednesday showed that Australian consumer price index inflation grew slightly more than expected in the first quarter, while underlying inflation fell back into the Reserve Bank of Australia’s target range of 2%-3%, supporting the case for a rate cut.

The RBA is expected to cut interest rates by 25 basis points at its next policy meeting on May 20.

Australia’s S&P/ASX 200 edged 0.3% higher.

Other Asian stock indexes only edged higher despite easing U.S. tariff tensions.

Nifty 50 down amid Indo-Pak tensions; KOSPI down on political unrest

India’s Nifty 50 fell 0.2% at open.

Pakistan’s Information Minister Attaullah Tarar stated on Wednesday that the country has reliable intelligence indicating India may carry out a military strike within the next 24 to 36 hours.

This development comes amid growing tensions between the two nuclear-armed neighbors, after India alleged that Pakistani elements were involved in last week’s attack that killed 26 people at a tourist site in Indian Kashmir.

Meanwhile, South Korea’s KOSPI declined after media reports showed that South Korean prosecutors were searching the private residence of ousted President Yoon Suk Yeol.

Yoon was ousted after he declared a martial law in South Korea in December last year.