Global Markets React to Economic Data and Tariffs

Asia-Pacific markets traded mixed on Wednesday as investors parsed key economic data, including China's manufacturing activity, Australia's inflation rate, and the Bank of Japan's policy meeting. China's manufacturing activity fell to a near two-year low, sliding into contractionary territory, while Australia's first-quarter inflation rose 2.4%, higher than expected. The Bank of Japan is expected to hold rates at 0.5%. Overnight, US stocks closed higher, with the Dow Jones Industrial Average rising 0.75%.

The U.S. stock market experienced a volatile day on April 30, 2025, with the S&P 500 posting narrow gains despite a report showing the U.S. economy contracted in the first quarter. The Dow Jones Industrial Average rose 141.74 points, or 0.35%, to 40,669.36, while the Nasdaq Composite fell 0.09% to 17,446.34. The S&P 500 advanced 0.15% to 5,569.06. The GDP report showed a 0.3% decline in the first quarter, attributed in part to a surge in imports ahead of President Donald Trump's tariffs. Despite initial recession fears, investors rebounded, capping a remarkable comeback in April. Trump's tariffs and trade policies remained a point of contention, with some investors expressing concerns about the impact on the economy. Meanwhile, the artificial intelligence trade remained intact, with companies like Meta Platforms and Microsoft continuing to invest in AI.

The article provides live updates on the stock market, noting that S&P 500 futures slipped 0.51% and Nasdaq 100 futures lost 0.66% as traders await a batch of economic data. The Dow Jones Industrial Average futures added 300 points. The major averages ended Tuesday higher after positive comments from Commerce Secretary Howard Lutnick and President Donald Trump on a potential trade deal. The article also highlights the release of key economic reports, including the first reading of the first quarter's gross domestic product and the personal consumption expenditures price index for March.

China's manufacturing activity plummeted in April due to the trade war with the US, with the Purchasing Managers' Index (PMI) dropping to 49.0, its lowest reading since December 2023. The US tariffs, which reached 145% on many Chinese products, and China's retaliatory 125% duties on US imports, have disrupted trade between the two economies. Economists warn that this could lead to a global recession, and have revised down their growth forecasts for China.